Small Loans Get More Expensive to Take

Posted by Warren Krech on September 23, 2013

If you take out a small loan, it may cost you a little more, thanks to a veto override.

The fee increase will primarily affect smaller loans that are repaid over several months or years. It’s not meant to affect payday loans, which can last no more than 31 days.

The measure doubles the origination fee that lenders can charge from 5% to 10% of the principal. But it still can’t cost you more than $75. Lending industry lobbyists describe it as a minor change. But some consumer advocates don’t like the new law.

Lawmakers overrode several of Governor Nixon’s vetoes during this month’s veto session.

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