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Non-profit wages war against Missouri short term sector

Jul 16, 2012 Philip Burgess

Short term loans are a lucrative form of short term lending that can be beneficial for a number of people. Individuals who are underbanked, have poor credit or simply need fast cash can use their next expected paycheck as collateral and receive a loan immediately. The process and be invaluable for those who are faced with an unexpected expense. However, numerous lawmakers are unhappy with the practice, as it usually requires a higher rate of interest, so the company can pay its overhead charges. A number of individuals and businesses are attempting to fight imposed regulations that could ruin the industry. Missourians for Responsible Government One non-profit agency, based out of Kansas City, Missouri, is attempting to support legislation that would instill interest capping laws, by donating money to the cause. The Kansas City Star reported Missourians for Responsible Government made an $181,500 donation earlier in June to a political committee, called Missourians for Equal Credit Opportunity, which calls for change to the successful sector. According to the source, the business has given the organization around $2.1 million in the last year. The sum was donated to support a specific proposed law, the source said - the potential ballot question that could cap the interest rate of short term loans at 36 percent. Hopes for industry growth Many in the lending industry hope that a number of factors will contribute to the proposal being left off the ballot altogether. The Associated Press reported that the proposal has been a long-standing issue in the Missouri government for some time. Originally, the source explained, supporters has 180,000 signatures from those who claimed they supported an interest cap. However, a state court ruled the language of the ballot title and summary was unclear, nullifying many of the signatures, the AP reported. The proposal is still coming under fire. "Despite that ruling, Missourians for Responsible Lending continues to deceive voters," a statement from attorneys that opposed the vague summary read, according to the AP. The Kansas City Star explained Missourians for Responsible Government is not the only organization that has mobilized in the short term lender issue. The source detailed QC Holdings, an Overland Park, Kansas, short term lender told the United States Securities and Exchange Commission that leaders have donated a large sum of money to oppose the 36 percent cap initiative.