Governor Nixon says Senate Bill 694 “provides false hope of true payday lending reform while in reality falling far short of the mark.” He goes on to say the bill gives payday lenders the power to 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.
“Missourians want meaningful payday lending reform, not a sham effort at reform that allows such predatory practices to continue,” says Nixon in a news statement. “I encourage the General Assembly to approach this problem again next year, and present me with a bill that delivers true reform.”
Nixon also 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.
He says this bill would restrict the authority of local governments over short-term lenders, eroding local control in areas such as zoning and permitting with respect to such entities.
¬Communities Creating Opportunity (CCO), a Kansas City organization, applauds Nixon’s vetoes saying the action sends the right message to the community.
“Early this year, the payday loan industry tried to strong-arm another giveaway through the legislature at the expense of some of Missouri’s most vulnerable families, calling it a reform bill. SB694 is a sham, anything but reform,” says CCO’s Andrew Kling in an email statement. “It’s no surprise that an industry that makes billions by trapping the working poor with false promises and dirty fine print would try to stay in business by doing the same thing to lawmakers.”
“Fortunately, Gov. Nixon saw through the smoke and mirrors and vetoed SB694,” Kling says. “The payday loan industry actually sent their lobbyists to advocate in favor of this bill, which should tell you everything you need to know.“
CCO’s full statement is available above.
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