HB 989 -- Payday Loans

Sponsor:  Davis

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

(1)  Limits the interest and other fees that may be charged on
loans to not more than an annual percentage rate (APR) of 10%
over the prime interest rate;

(2)  Requires lenders to post in at least six-inch high numbers
the maximum APR that they are currently charging.  Loans
initiated through the Internet must display this information in
at least 16 point type;

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

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

(5)  Allows the Attorney General to sue for injunctions,
rescission of loan contracts and restitution, and civil penalties
for violations;

(6)  Requires lenders to disclose to the borrower the total
interest paid upon the loan maturity date; and

(7)  Removes the provision requiring the Division of Finance
within the Department of Insurance, Financial Institutions, and
Professional Registration to report annually to the General
Assembly.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:21 am