News Column

St. Louis Post-Dispatch Jim Gallagher column

July 10, 2014

By Jim Gallagher, St. Louis Post-Dispatch

July 10--Governor Jay Nixon has signed a bill prohibiting pension advance loans for public employees.

Under such deals, arranged with private lenders, the worker surrenders his right to all or part of a monthly pension check in exchange for an up-front payment.

Consumer agencies and state Treasurer Clint Zweifel, have attacked such deals as bad for consumers because of high interest rates and fees.

"Missouri became the first state in the nation to shut its doors to these predatory businesses," said Zweifel, who called the law his top legislative priority.

The bill prohibits such deals for state and local government employees, but not employees of private companies.

Jim Gallagher is a reporter at the Post-Dispatch


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Source: St. Louis Post-Dispatch (MO)

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