Two Lawsuits Filed Over Missouri Payday Loan Ballot Measure

Two lawsuits have been filed in Missouri's Cole County Circuit Court over a potential ballot measure capping the costs of payday loans. Opponents of the measure filed their lawsuit Aug. 18, arguing that the ballot summary is inadequate and unfair because it does not mention the 36 percent cap on interest, fees, and charges for payday loans. The suit also takes issue with the state's cost estimate, arguing that it left out significant costs to the industry if the measure becomes law. The lead plaintiff in the suit is John Prentzler, an executive with QC Holdings Inc. Another suit was filed Aug. 19 that challenges Missouri State Auditor Thomas Schweich’s fiscal note for the proposed initiative petition. Supporters of the ballot measure claim that Schweich ignored the testimony of numerous state agencies and municipalities that concluded the reform would have no cost to the state, cities or counties.

St. Louis Post-Dispatch (08/22/11) Hancock, Jason