JEFFERSON CITY, Mo. – Governor Jay Nixon vetoed a bill Tuesday afternoon that would have increased the maximum fee for an open-ended loan from banks, credit unions and payday loan companies. Senate Bill 345, authored by Republican Jay Wasson from Springfield, would have increased the maximum fee from $75 to $100.
Nixon vetoed the legislation because he believes the fee increase could hurt Missouri’s poor.
“This fee increase will have the most impact on consumers of limited means who take out relatively small loans and would have a repetitive financial impact as they could be charged on any extension, refinance, restructure or renewal of the loan, if there is ‘any investigation’ on the subsequent application,” Nixon said in his veto message.
The bill would have also added $200 to multiple fees that must currently be paid by financial institutions, including licensing fees to open a bank or loan center or to distribute checks, annual registration fees, among others.
The maximum fee increase this bill allowed would have offset the increased costs for banks to pay these fees.
The full text of the bill of the bill can be read here.
