Opponents of payday loans say extremely high interest rates and quick turn-around sink people into a never-ending cycle of debt. Those in favor of the loans say they are providing a necessary service by offering loans to people who otherwise would not have access to them.
Payday loans are unsecured loans of $500 or less that must be paid off within 31 days. Sen. John Lamping, a St. Louis County Republican, told a Senate committee Monday that people should get at least 90 days to pay off those loans. The bill would also make it illegal for payday lenders to roll over or extend loans beyond 90 days.