HB 150 -- Payday Loans

Sponsor:  Still

This bill changes the laws regarding unsecured loans of $500 or
less, commonly known as payday loans.  In its main provisions,
the bill:

(1)  Limits the interest and other fees that may be charged on
the loans to $15 per $100 of principal for the first 30 days of
the loan and not more than 3% per month thereafter, which is an
annual percentage rate of approximately 36%;

(2)  Prohibits repeated renewals of loans to circumvent interest
rate restrictions;

(3)  Grants jurisdiction to the Attorney General to issue cease
and desist orders against violators;

(4)  Allows the Attorney General to sue requesting a circuit
court to issue an injunction, restraining order, or declaratory
judgment; to impose a civil penalty; or to impose an order of
rescission, restitution, or disgorgement against a person or
entity who has violated any laws relating to consumer loans;

(5)  Specifies that the limitations apply to all lenders, whether
or not they are properly licensed pursuant to Chapter 408, RSMo;
and

(6)  Requires the Division of Finance in the Department of
Insurance, Financial Institutions and Professional Registration
to report annually to the General Assembly various information
relating to loans issued by lenders.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am