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A pair of organizations in Missouri has joined forces in a bid to push through ballot measures which would put a limit on the interest rates charged by instant cash loan companies as well as increasing the state minimum wage. The groups are ‘Give Missourians a Raise’ and ‘Missourians for Responsible Lending’. They spoke at a meeting in late January 2012 which was hosted by ‘Grass Roots Organizing’ in Columbia, Missouri. According to Robin Acree, one of the event’s organizers, the groups wish to combine, not compete. This event was designed to help educate residents of Missouri about these two important issues and to listen to suggestions for change. One might think that the event organizers would be disappointed at the attendance which was listed as just 80 people; but there was great energy in the crowd.

Instant Cash Loan Interest Reduction

One of the main orders of business was to discuss the current payday lending industry within the state. According to the ‘Missourians for Responsible Lending’, short-term loans of this nature can exceed 400% APR. Their goal is to reduce this to 36% which would match the maximum interest rate allowed in several other states. Mary Still, a Democrat for Columbia, told the crowd that they had the power to fight back against ‘predatory’ instant cash loan lenders. Still is known for her staunch anti-emergency loan stance and has campaigned to have the maximum interest rate cut to just 36% for the last two years. Her efforts have thus far been unsuccessful but she is confident that the peoples’ voices will eventually be heard.

Former employees of payday loan stores spoke out against the industry. They claimed that only 2% of people use this form of loan once, repay it successfully and then don’t need help again. They also stated that people who use short-term loans become trapped and are unable to repay on time. These assertions have been rejected by loan companies who say that the majority of the clients are one-time customers. These lenders also refute claims that low income families are the main targets by pointing out that higher earners also avail of the service.

Minimum Wage

The other matter that was attended to related to an increase in the current hourly minimum wage which currently stands at $7.25 an hour. ‘Give Missourians a Raise’ wants this figure increased to $8.25 an hour. The average Missourian who works for minimum wage in a full-time job earns around $290 a week and an annual wage of $15,000. The minimum wage increase would add around $2,000 a year to a worker’s pay packet, money which the protesting groups believe is vital in preventing Missourians from turning to instant cash lenders for help.

Robin Acree said that 105,000 signatures were required from six of the nine congressional ballots in order for the two proposals to make the ballot and be considered by state officials. Both groups hope to gain signatures on Monday and Friday each week. Attendees were also encouraged to donate money to the cause. A number of them listened and started collecting signatures from colleagues at work.