Intro: Payday and title loans are increasingly coming under fire from consumer protection groups because of high interest rates. Hillari Duthoo (DOO-thoh) has the rest from the state Capitol.
The number of title and payday loan companies in Missouri is growing, along with the demand for cash-now.
Thousands of middle and lower class families rely on fast cash loans for things like doctors bills.
Consumer protection agencies say these loans are problematic because they add to rather than help customers out of debt.
Jean Ann Fox, a spokesperson for Consumer Federation of America, says this form of credit is usually used by consumers who can not afford to pay up to 300% interest in the limited time allowed.
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| Description: "Consumers who are hocking the title to their cars for a few hundred dollars in quick cash are on the lower end of the income scale, they're haveing a real struggle makeing ends meet." |
US Senator Jim Talent is sponsoring a bill which would cap interest rates for loans granted to armed service members.
From the state Capitol, I'm Hillari Duthoo.
Intro: Consumer protection agencies call payday and title loans traps for debt. Hillari Duthoo (DOO-thoh) has that story from the state Capitol.
Consumer protection groups say fast cash loans only accumulate debt that consumers can't repay in the limited time allowed, at rates sometimes of 300 percent.
Payday loan companies, like Check N' Go, say their customers appreciate the availability of cash-now.
John Rabenold, spokesperson for Check N' Go, says the loans his company offers tend to be less expensive than the alternative.
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| Description: "They find that when they use our service, it's easy to understand and convenient, the dollar cost tends to be less. And there's no negative hits on their credit rating which they're trying to protect." |
US Senator Jim Talent is sponsoring a bill that would cap interest rates on these types of loans, but only for military personel.
In the state Capitol, I'm Hillari Duthoo.
MDN.ORG:
Missouri Digital News
