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Interest rates higher than 300 percent

May 9, 2001
By: Aaron Cummins
State Capital Bureau

We've all seen the big signs..."payday loans"... "car title loans"... "no credit check required," but Missouri's auditor says those agencies aren't treating customers fairly. Aaron Cummins has more.

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State Auditor Claire McCaskill says consumers aren't getting all the information they deserve on these short-term loans.

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Contents: McCaskill says consumers are being taken advantage of by fine print and lack of disclosure by loan agencies.

McCaskill says borrowers can pay as much as 300 percent interest.

That's as much as 150 bucks on a $500 loan repaid in a month.

McCaskill says lawmakers need to stiffen the rules governing the industry.

There's a bill pending Senate approval that would do just that.

From Jefferson City, Aaron Cummins, KMOX-News.

Agencies in the "payday" and "car title" loan industry are acting unfairly, according to a report released by Missouri's auditor. Aaron Cummins has more from Jefferson City--

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Claire McCaskill says there's a lapse in regulations over these short-term loans... and she says that should change.

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The state auditor says fine print in payday and car title loan applications make it easy for someone to misunderstand the contract... and then end up paying huge interest rates.

There's a bill pending that would strengthen the rules governing these loan companies... and McCaskill says she hopes it passes before the legislative session ends next week.

From the state capital, Aaron Cummins, KMOX-News.