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Missouri short term lender bill contested by nonprofits

Jun 26, 2012 Philip Burgess

For consumers, short term lending providers continue to be necessary aids for paying bills and accessing financing. However, state legislation in Missouri is threatening the sector. One nonprofit, Missourians for Responsible Government, is helping to fight the bill that would impose additional restrictions on short term lenders. In fact, the organization has donated more than $2 million to the fight, with its most recent gift totaling $181,500, The Kansas City Star reports. Missourians for Responsible Government was founded by Patrick Tuohey, who is also Republic Sarah Steelman's press secretary for her bid in the state's U.S. Senate race, the paper explains. Additionally, QC Holdings is also giving funds to help fight the measure, which was already struck down by a county judge but resurrected by a petition drive. The bill, which was submitted by James Bryan, seeks to limit the annual interest rate, fees and finance charges. However, it could result in business closures as well as lost revenue totaling between $2.5 to $3.5 million for state governmental entities, according to the amendment. Ultimately, the measure will be decided in the November election by the state's voters.