Oct 17, 2012 Quinn Thomas
This was the case in Missouri, but the proposed question that would have put a cap on interest rates did not make it onto the November elections ballots. Nonprofits supporting the restriction did not obtain the necessary amount of signatures needed, the Columbia Daily Tribune explained. However, some individuals will not let the issue go, despite the fact that the deadline for finalization passed in September. According to the St. Louis Post-Dispatch, a number of church leaders in the city have said they are still interested in restricting the interest rates associated with short term loans despite the fact that the issue can't qualify for appearance on the November ballot. Some members of congregations maintain that the groups did obtain the necessary number of signatures, but are being held back by authorities, the news source said. Many people affected
Should members of area churches be successful in their future endeavors, many individuals in Missouri will most likely be adversely affected. Putting caps on loans can severely limit the income of lenders, which sometimes either close their doors or stop offering the borrowing options. "As has been the case in other states, because of the numerous costs involved, virtually no operator can offer the product at that rate, and all of them will almost certainly go out of business," explained Joe Coleman, president of the Financial Service Centers of America, to USA Today, using the 36 percent cap in Arizona as an example. Should that scenario occur, many people will have to find alternative means of borrowing. According to a study by The Pew Charitable Trusts, 11 percent of individuals in Missouri take out a short term loan on a regular basis.