A Missouri House panel adopted a measure to drop renewals on payday loans and lower the amount of interest borrowers can charge.

Payday loans under current law can be up to $500 and last from 14 to 31 days. Loans can be renewed up to six times.

A borrower in Missouri cannot be charged more than $75 in interest and fees for a $100 loan. The measure endorsed by the House Financial Institutions Committee this week would lower that cap to $35.

The bill also allows a borrower to sign up for additional time to pay back a loan without penalty.

The Missouri Senate passed the measure earlier this year, but its version removed the cap on the amount of interest a borrower can be charged.

Several states in recent months have passed or have considered payday loan legislation. The most recent involved a payday lending reform bill in Utah that the state's Senate approved. That legislation is under review by Utah Gov. Gary Herbert.

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