By Rep. Mary Still
Special to The Globe
COLUMBIA Mo. —
I was astonished to read in The Joplin Globe (June 27) that John Payne, of the Show-Me Institute in St. Louis, had enough advance notice of a legislative hearing on my payday loan bill that he had the opportunity to drive to Jefferson City for the hearing.
He notes he also got an opportunity to listen to Shakespeare’s “Merchant of Venice” on his drive.
Lucky guy.
It is unfortunate that I, the sponsor of the payday loan bill, was not given any advance notice of a hearing. After being tipped off the evening of the hearing, I asked to speak but was told I could not.
As it turns out, the acting chair of the committee is also the owner of a payday loan store, Kwik Kash, in Cabool, and he only wanted the industry to testify.
Had I been allowed to speak. I would have made these points:
* Missouri has the weakest laws in the nation, with an annual percentage rate of 1,950 percent.
* Missouri allows six rollovers. Fees are charged for each renewal resulting in financially unsophisticated borrowers falling into a spiral of debt that often results in repossession of cars and other belongings.
* Every state surrounding Missouri prevents rollovers.
* The Missouri Better Business Bureau reports that more than 90 Missouri nursing homes have payday lenders operating inside their nursing homes. No other states allow this.
Mr. Payne’s point that usury today is not as bad as it was in Shakespeare’s time provides little comfort to the working poor and to those trapped in a spiral of debt.
His use of statistics provided by QC Holdings, the owners of 500 payday loan stores, reminds me of a quote from “The Merchant of Venice”: “The Devil can cite scripture for his own purpose.”
Rep. Mary Still is a Democrat representing the 25th District. She lives in Columbia.
