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payday loans

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There will be another attempt to pass a payday loan bill during next year's legislative session in Jefferson City. State Rep. Charlie Davis, R-Webb City, is planning to refile a proposal he submitted earlier this year but did not receive a hearing. It would place limits on how often a payday loan can be renewed and how much money a person is allowed to take out at one time.

A payday loan shop on Natural Bridge Avenue east of Union Boulevard. The high interest rate of payday loans can leave people on the hook for paying more in interest than the original loan.
File photo | Camille Phillips | St. Louis Public Radio

The St. Louis Board of Aldermen on Friday gave initial approval to legislation that would put new restrictions on payday lenders in the city.

The full Board of Aldermen is expected to take up the stadium funding plan next Tuesday.
Jason Rosenbaum I St. Louis Public Radio | file photo

St. Louis aldermen want to place stricter regulations on “payday loan” establishments, part of a broader movement to combat institutions that provide short-term cash to primarily low-income individuals.

Payday loan companies tend to provide small, short-term loans to people. Some critics of the institutions say that they place high interest rates on the loans, which send low-income people who use the service into a cycle of debt.

This article first appeared in the St. Louis Beacon, Feb. 2, 2012   The Missouri secretary of state's office has approved for circulation two more initiative petitions that call for more restrictions on the payday loan industry.

But critics say the new petitions are a ruse advanced by the industry because the proposed interest rates could still be close to the 400 percent charged now.

This article first appeared in the St. Louis Beacon, Jan. 18, 2012 - A law firm hired by the payday industry is blanketing the state with letters telling clergy, church board members and religious groups that their active support for a ballot initiative restricting payday loan interest rates could threaten their tax-exempt status.

This article first appeared in the St. Louis Beacon, Jan. 6, 2012 - Allies of the payday loan industry are beefing up, moneywise, as they continue to prepare for a possible battle at the ballot box against those who seek to limit how much interest can be charged on such loans.