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Senate Gives Initial OK To Payday Loan Limits

People in Missouri could pay less for payday loans under the terms of a bill passed by the state Senate.

Johnathan Woodward has more from Jefferson City.

Right now in Missouri, there are no limits on the interest rates of payday loans, or the number of times a payday loan can be renewed.

But the state Senate has given initial approval to some restrictions on payday loans.

One limit caps interest and fees to 75 percent of the initial loan.

So, if you take out a 100 dollar loan, the limit would mean you'd pay no more than 75 dollars in interest and fees.

Senator Ronnie De Pasco of Kansas City says the limits are a compromise designed to protect consumers and lenders:

The bill faces another vote in the Senate before going to the House.

In Jefferson City, Johnathan Woodward.