HB 272 -- Payday Loans

Co-Sponsors:  Muckler, Burnett, Jolly, Corcoran, Jones, Haywood,
Curls, Walker, Walsh, Hubbard, Darrough

This bill makes several changes to the restrictions on unsecured
loans of less than $500 with a term of between 14 and 31 days,
otherwise known as "payday" loans.  The bill prohibits lenders
from charging more than $15 for every $100 of principal for the
first 30 days of the loan.  After 30 days, the lender may charge
no more than 3% per month of the outstanding loan balance,
whether made by the original lender or any entity associated with
the lender.  Current law allows the lender to collect up to 75%
of the initial loan amount in interest or fees.  The bill also
repeals language that allows a lender to treat the renewal of a
loan as a new loan.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am