Report: Koster to appeal ruling over payday loan ballot summary

Jessica M. Karmasek Apr. 13, 2012, 11:00am


JEFFERSON CITY, Mo. (Legal Newsline) - Missouri Attorney General Chris Koster reportedly will appeal a decision over the ballot title of a payday loan initiative.

According to The Associated Press, Cole County Circuit Judge Daniel Green struck down the title last week.

In his ruling, the judge called the ballot summary prepared by Secretary of State Robin Carnahan's office "insufficient," "unfair" and "likely to deceive voters."

In particular, Green said the summary only stated the initiative, which aims to put certain restrictions on the controversial payday loans, would limit interest rates but did not provide a specific limit.

Koster's office, which represented Carnahan in the lawsuit, told the AP on Wednesday that it planned to appeal the ruling.

Carnahan's office told the AP it stands by its original wording.

Payday loans are short-term loans or cash advances, typically 14 days, secured by a post-dated check or, when made over the Internet, secured by an agreement authorizing an electronic debit for the full loan amount plus interest from the consumer's account.

Such loans carry substantial risk to the lender, including default rates as high as 20 percent.

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