In vetoing Senate Bill 694, the Governor said the bill "provides false hope of true payday lending reform while in reality falling far short of the mark." Instead of true reform, Senate Bill 694 "appears to be part of a coordinated effort by the payday loan industry to avoid more meaningful reform." The Governor pointed out that under the bill payday lenders could still charge 912.5 percent for a 14-day loan, and that borrowers could still be offered multiple loans by multiple lenders at the same time or be encouraged to take out back-to-back loans from the same lender.
"Payday lending often perpetuates an endless cycle of debt for consumers who can least afford it, and this bill fails to protect Missourians from being caught in this downward spiral,"
The Governor's veto message on Senate Bill 694 can be found here (http://governor.mo.gov/sites/default/files/SB%20694%20veto.pdf).
Similarly, the Governor has vetoed Senate Bill 866, which would create a new term ("traditional installment lender") to describe a consumer lender not licensed as a bank or credit union lender.
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