Incorrect

In 2006, the average percentage rate on a Missouri payday loan was 422%!  Millions of people in need have used payday loans to obtain small amounts of money (usually $100 to $300).  Lenders charge extraordinarily high percentage rates, sometimes as high as 2,000%!  Many people fall into a cycle that seemingly cannot be broken when they are not able to repay the loan on time and must pay a fee (often around $17 per $100) to extend the loan.  At this rate, it is easy to see how someone could owe hundreds, or even thousands, of dollars over time.

Source:  Missouri Division of Finance, Survey of Payday Lenders, Report to the General Assembly, January 2007, downloaded on 3-14-07 from http://www.missouri-finance.org/upload/2007_payday_lender_survey_001.pdf