Missouri Supreme Court Approves Ballot Initiative That Would Cap Interest Rates On Payday Loans

The Missouri Supreme Court last week approved a ballot initiative that, if passed, would place a cap on payday lending rates. The ruling is a victory for fair lending groups and consumers in a state that has some of the loosest payday lending regulations in the country. The law would cap rates at 36 percent, a far cry from the current situation, where rates can exceed 400 percent. Missourians for Responsible Lending, a coalition that includes faith-based organizations and consumer groups, has pushed the initiative, which will now appear on the November ballot despite heavy spending from outside interests intent on keeping it off. (HT Nick Sementelli)