Cash Pay Advance

LOUIS (AP) — Attorney General Jay Nixon, clergy leaders, and several Democratic legislators are calling for restrictions on Missouri’s payday loan industry, saying it is profiting on the backs of the state’s most vulnerable people. Nixon said borrowers of payday loans in Missouri pay an average of 422 percent APR — the Annual Percentage Rate representing the cost of credit to the consumer — but that some are charged as much as 1,950 percent APR. Citing figures from the Missouri Division of Finance, Nixon said nearly 3 million payday loans were issued last year and the number of new loan licenses has increased by 69 percent since 2003, illustrating ‘‘it is a huge growth industry. The FTC advises consumers to consider other options before choosing a payday loan, such as a small loan from a credit union or small loan company, a pay advance from an employer, or a loan from family or friends. Find Out More

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