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Thursday, February 4, 2016

Payday loan or loan shark?


Loan sharks are Known to be cheaper than some payday lenders in Missouri. 

Missouri allows short term loans(14-31 days) under (Mo. Rev. Stat. §§ 408.500)  According to the Missouri department of finance a 75 percent cap on interest and fees on the initial loan and interest can apply daily and must be posted.  This means a loan of $100, if not paid back the next day, will cost you $75 just in fees and interest!!!  This cap was only placed a few years ago and a measure to limit it at 39% was not even allowed to ballot. Usury Laws used to protect consumers from this. The Uniform Small Loan Law capped interest rates at 36%. http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=2062&context=lcp
  So in short, avoid payday loans and loan sharks for that matter, save your money and your legs.

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