Payday Loans in Missouri

Abstract

Payday loan outlets across the U.S. off er short term loans with high interest rates in comparison to credit cards and other consumer credit. Generally, low income and military families are served by payday loan outlets while wealthier consumers have access to lower interest loans. Missouri has some of the most lax regulations according to the Missouri Attorney General and Predatory Lending and the Military: The Law and Geography of “Payday” Loans in Military Towns. A Missouri payday loan customer can be charged as much as a 1,950% Annual Percentage Rate (APR) in comparison to 12.71% APR on the average credit card. The average APR Missouri customers will pay is around 420%, but the 1,950% APR demonstrates the extreme that is possible under current Missouri law. Other states, such as Oregon, cap the APR payday lenders can charge at 153%.