Nixon vetoes bill that would have increased lending fees

(From Gov. Jay Nixon)

Gov. Jay Nixon today vetoed Senate Bill 345, which would have increased the fees that lenders, including banks, credit unions and consumer installment lenders, can charge consumers for loans by as much as 33 percent.

“Allowing lenders to gouge consumers with higher fees is not the way to move Missouri forward,” Gov. Nixon said. “This bill would have made it harder for Missouri families to make ends meet and should not become law.”

Current law limits the fees lenders can charge for many consumer loans to 10 percent of the principal up to $75. This bill would increase the fee to 10 percent of the principal up to $100. This means that most consumer credit loans over $750, not secured by a mortgage, could see a fee increase. Consumer credit loans of $1,000 or more could have a $100 fee, where lenders can currently only charge $75. This is an approximately 33 percent increase in the fee on a large portion of loans made to Missourians.

A copy of the Governor’s veto message on Senate Bill 345 can be found here.

In addition to Senate Bill 345, Gov. Nixon also vetoed House Bill 1098, which would have allowed out-of-state trust companies to operate in Missouri under more favorable rules than those applicable to Missouri-based trust companies.

“At a time when the fiscal soundness of our financial institutions is vital to the stability of our economy as a whole, this bill would take Missouri backwards by weakening these financial protections,” Gov. Nixon said.

A copy of the Governor’s veto message on House Bill 1098 is available here.

Finally, Gov. Nixon vetoed House Bill 629, which contains two problems that would impact the Board of Trustees of the Public School Retirement System of St. Louis, including the requirement that a teacher or administrator from a Kansas City charter school serve on the board.

A copy of the Governor’s veto message on House Bill 629 is available here.