Missourians push to cap payday loan interest rates

ST. LOUIS - "There are over twice as many payday loan stores in Missouri as there are McDonald's and Starbucks combined," Robin Acree, executive director of GRO-Grassroots Organizing, said as she talked with this reporter outside of the Missouri State Capital last year.

"There is one on damn near every street corner," she continued.

"And the Republican-controlled [state] House and Senate refuse to do anything to reign in these parasites, parasites that prey on Missouri's most vulnerable."

According to the Missouri Division of Finance, in 2010 there were an estimated 1,040 payday loan stores in the Show-Me-State.

Acree's organization, which is based in Mexico, Mo., was founded 12 years ago by a single mom on welfare who said she was tired of being ignored by Missouri politics and politicians. GRO describes itself as the only progressive, direct action, grassroots organization based-in rural Missouri.

Darryl Howard, an African American public sector union member , has filed for bankruptcy due to his payday loan debt. According to him, "Enough is enough!"

Howard works full time at a north St. Louis mental health habilitation center where he feeds and bathes patients, checks their vitals and blood pressure, and performs other duties. Twenty-five percent of his $10 an-hour wages are garnished by payday loan companies, which are allowed to charge exorbitant interest rates.

He is stuck in a cycle of debt, with over $15,000 owed to payday loan companies like Quick Cash, St. Louis Title Loans and Missouri Title Loans.

Howard, understandably, tries to get all the overtime he can. "I'm tired and exhausted, but the overtime is worth it," he said.

Howard's situation isn't that uncommon. Like many low-income workers, as his bills mounted, he borrowed money from one payday loan store to pay the bills, and then borrowed from another payday loan store to pay off the other.

He started receiving harassing phone calls, and found out the hard way that payday loan companies "will do anything to hunt you down," including "show up at work.

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Missourians push to cap payday loan interest rates

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