HB 1462 -- Payday Loans

Sponsor:  Burnett

This bill changes the laws regarding unsecured loans of $500 or
less, sometimes referred to 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; and

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

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:10 pm