Attorney General Challenges Court's Decision to Vacate "Payday Loan Initiative"
JEFFERSON CITY, Mo., April 19, 2012 /PRNewswire-USNewswire/ -- Stand Up Missouri continues to rally its supporters and build consensus, despite the Missouri attorney general's decision to appeal the decision by the Circuit Court of Cole County to vacate Initiative Petition 2012-66 (the so-called "Payday Loan Initiative"). Judge Daniel R. Green found that the ballot title is likely to mislead voters about the real impact of the initiative petition because, among other defects, it failed to accurately assess its economic impact on Missouri by disregarding its detrimental effect on traditional installment lenders and other safe and affordable credit options.
The petition's fiscal impact analysis failed to assess the petition's negative impact on traditional installment lenders. Judge Green wrote that the Auditor's fiscal note acknowledged that traditional installment loans "will be negatively impacted and many will close down. Yet the Auditor did not perform a fiscal analysis of this undisputed impact."
Missourians have relied on traditional installment loans as a safe and affordable option for personal and household credit for over 50 years. These loans afford Missourians the ability to build financial security and to help individuals and families stave off financial distress when the need for credit arises. They represent a particularly important credit option during times of economic uncertainty as other credit sources have become significantly limited.
"I work in the automotive industry, and things were pretty good for me until the economy went bad and I had to get a second job to take care of the family," recalled consumer Victor Tyson, of Columbia, MO. "I also got a loan to help out, to help keep us where we needed to be in life. The loan company really helped me understand how to budget my money and get my life straight. The traditional installment loan companies are good for us. They help out in a positive way."
"They explained everything to us, went over our budget in detail, and the terms were very affordable," said Sara Schwartz, of Boonville, MO. Sara took out a traditional installment loan when her husband became ill and the family needed emergency funds. "Being parents, it's really nice to know that I have a place to go to get money when and if it's needed."
Stand Up Missouri will continue to educate Missourians about the importance of financial freedom and the benefits of traditional small-dollar installment loans and it will continue to address misinformation disseminated by special interest groups, and to protect access to safe and affordable credit in Missouri.
For more information on Stand Up Missouri, please visit www.standupmissouri.org.
About Stand Up Missouri
Stand Up Missouri is a nonpartisan coalition dedicated to protecting access to safe and affordable traditional installment loans in Missouri. Stand Up Missouri does not represent payday lending or payday interests.
SOURCE Stand Up Missouri