Geary said APR is not an accurate measure of interest on a short-term loan. He said legislators should let the market decide the rates and focus on regulating fees, the length of the loans and disclosure of interest rates. Liese s bill restricts fees to 5 percent of the principal, the same as under the current Missouri rate. The bill would restrict the number of times a borrower could renew a loan by paying off the interest. It doesn t kick in fast enough, Fox said.
Folks tend to get caught in a cycle where they just roll over.
This is the part of the bill Rhoads wanted to be tougher. Rhoads wanted the Liese bill to look similar to a best-practices act his client and other payday loan chains signed. The act recommended limiting the number of rollovers to three. Rhoads said he still supports the legislation. I think it certainly meets the objective of my client, he said We want to legitimize the industry.