The Senate has given preliminary approval to a bill that would make changes to laws regarding payday loans. Short-term loans – loans intended to provide cash until payday – could leave borrowers paying 300-to-400 percent of the principal once the interest is taken into account. A bill put forward by Senator Ronnie DePasco of Kansas City puts a 75-percent cap on the interest. DePasco’s bill would ensure that a person borrowing $100, for example, would shell out no more than $175 to pay off the loan. He says the Legislature is to blame for this uncapped interest. The bill needs another positive vote in the Senate before it can move to the House.
