By Maria Hickey, KWMU
St. Louis, MO. – Attorney General Jay Nixon wants stricter regulations on the payday loan industry in Missouri.
The Democrat says Missourians paid more than $300 million in interest on such loans in 2005, more than any other state except California.
Nixon says current law allows payday loan companies to charge 1,950% Annual Percentage Rate to Missourians.
"What other states have done, what Congress has done to stand up to this industry makes Missouri an outlier," Nixon said. "We have the worst record in the country as far as standing up to this industry, and it's time for Missouri to move forward."
Nixon says the interest rates should be capped at about one and half times credit card rates, similar to a law passed this year by Congress for members of the military.
Senator Rita Heard Days (D-St. Louis) introduced such legislation last session. She says she plans to introduce the legislation again.