HB 959 -- Financial Services

Sponsor:  Luetkemeyer

This bill revises a variety of provisions regarding financial
services.

The bill expands the College Tuition Savings Plan (also known as
a "529 Plan") by allowing Missouri residents to use any qualified
529 Plan from any state or political subdivision.  Currently,
Missouri residents can use only the state-sponsored plan, known
as the Missouri Higher Education Savings Program.  The bill also
establishes an additional savings plan, to be known as the
Missouri Higher Education Deposit Program, which allows any bank
in Missouri to establish savings accounts as part of a 529 Plan.
State employees may request automatic payroll deductions for
deposit into these accounts.  The bill requires the deposit
program to be administered in the same fashion as the current
savings program.  The provisions governing this program will
expire six years from the effective date of the bill.

The bill creates a cause of action for the deceptive use of the
name of another financial institution.  Any financial institution
may sue any person or entity that creates a misleading
advertisement or solicitation by including the name of the
financial institution without consent.  A plaintiff prevailing in
this type of action will be entitled to $10,000 in statutory
damages, plus any proven actual damages; attorney fees; and court
costs.

The bill makes several changes to the law governing how and when
a lender must provide a deed of release when a borrower has paid
off a mortgage.  Current law requires the lender to issue a
release to the borrower within 15 business days.  The bill
lengthens this time frame to 45 days.  The bill also allows the
lender to have the document recorded, rather than sending it to
the borrower.  If the document cannot be recorded for any reason,
the lender will have an additional 60 days to file a document
that can be recorded.  Finally, the bill limits the damages that
may be awarded for noncompliance to $300 per day; $10,000 in the
aggregate; or 10% of the amount of the loan, whichever is less.

The bill makes several changes in the laws governing small loans.
The bill:

(1)  Increases the maximum amount which may be charged as an
expediter fee from $6 to $15.  The expediter fee is money
collected by a third party to expedite the retrieval of a
debtor's motor vehicle title from the Department of Revenue;

(2)  Repeals a provision allowing a $10 charge as a late payment
fee; and

(3)  Allows lenders to collect a fee in advance for allowing the
debtor to defer monthly loan payments on loans of $600 or more.
The fee may be between $25 to $50, but not more than 10% of the
loan payments deferred.  This provision does not apply to
pre-computed loans.

Finally, the bill makes several changes to the crime of identity
theft.  The bill:

(1)  Makes it a class A misdemeanor when the identity theft
results in the theft or appropriation of credit, money, goods,
services, or other property valued at less than $500.  Current
law sets a penalty of six months in jail for a first offense and
does not refer to the value of the stolen property;

(2)  Makes it a class D felony when the value of the stolen
property is more than $500 but does not exceed $1,000;

(3)  Makes it a class C felony when the value of the stolen
property is more than $1,000 but does not exceed $10,000;

(4)  Makes it a class B felony when the value of the stolen
property is more than $10,000 but does not exceed $100,000;

(5)  Makes it a class A felony when the value of the stolen
property is exceeds $100,000;

(6)  Makes the identity thief liable to the victim for civil
damages of up to $5,000 per incident or three times the amount of
actual damages, whichever is greater;

(7)  Allows the victim to seek a court order restraining the
identity thief from future acts that would constitute identity
theft. In these actions, the court may award reasonable attorney
fees to the prevailing party;

(8)  Clarifies that the estate of a deceased person may pursue
civil remedies when the estate is a victim of identity theft;

(9)  Sets venue requirements for civil suits regarding identity
theft, sets a limitation on civil suits at three years, and
clarifies that a criminal conviction is not a prerequisite for a
civil claim;

(10)  Clarifies that identity theft does not include a minor's
misrepresentation of age by using an adult person's
identification;

(11)  Makes a second offense a class D felony when the value of
the property is less than $500; and

(12)  Creates the crime of trafficking in stolen identities, a
class B felony, which is evidenced by possession of five or more
identification documents.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am