JEFFERSON CITY, Mo. (AP) - A group of community and religious leaders is proposing a Missouri ballot measure that would effectively limit the cost of payday loans.
The secretary of state's office on Tuesday approved the wording of a proposed ballot summary, allowing supporters to begin a petition drive to put the question on a statewide ballot.
The proposal would cap interest, fees and charges for payday and car title loans at 36 percent per year. Critics of payday lending often point out that the annual interest on such loans can top 400 percent.
Jim Bryan is the treasurer of Missourians for Responsible Lending. Bryan says capping the cost of short-term loans is a matter of right and wrong.
But critics say the proposal would make it harder for some Missourians to get credit.