Payday Loan Initiative Off the Missourian Ballot


The group, Missourians for Responsible Lending, tried hard to get a payday loan initiative onto the November ballot. There is a required amount of proven signatures which must be collected in order to get any initiative onto a voting ballot. The group failed to do so and the much talked about short-term loans regulations initiative will not be voted on for now.

The initiative was set to cap the interest rate on these fast cash loans online or in storefronts. The basis of the argument is one that rings throughout many of the states. This group feels that the direct payday loans carry interest which is putting the residents of Missouri into debt traps. They feel that low income borrowers are being taken advantage of when the interest is set so high. The group has the chance to challenge the signature count, but since ballots will be certified before the legal fight would be over, Missourians for Responsible Lending withdrew the challenge. The group will be able to try again next year.

The opposition group, Missourians for Equal Credit Opportunity is celebrating their most recent victory which will keep direct payday loans as is. They fought to keep the options for payday loans as is. The argument that residents should have the option to get a loan as they see fit for their own finances should be left up to the borrower, not the state.

Missouri has one of the largest concentrations of payday loans storefronts for the population. This of course, does not include the online companies which are located all over the world.Whether Missouri will be able to get future additional regulations for the industry, customers do need to be aware that some lenders do not follow best lending practices.

What are good payday loan practices?

*Competitive interest rates within state regulations

*If no regulations, continued competitive rates

*Loan amounts within state regulations

*If no state regulations, loan amounts within income affordability

*Protect customer's information

*No aggressive collection practices

Shopping for a good lender will take a bit of time on the borrower's part. It is crucial for a borrower to understand the payback policy for these fast cash loans. Low cost payday loans will remain that way unless the debt is not paid off with the next paycheck. Extending these loans will begin the interest charges which can be quite hefty on a larger loan. Unregulated companies, such as offshore or native American tribe based lenders will loan higher mounts at much higher rates. The lure of the fast cash is very tempting for those who are in such a vulnerable state, but the outcome is usually not a good one. Extra high rates on large loan amounts will wreak havoc on a person's financial situation.

When working with an online company, be aware that the business could be located anywhere in the world even though their website may look like it is local. Call and talk to the company. Ask your questions and expect well informed answers.

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