There has been no change in legislation in Missouri for the Payday/Installment Loan Industry for 2018.
A bill known as HB2657 was introduced in the Missouri State House on March 1, 2018. The major thrust of this bill was to cap fees and interest at 35% of the amount of the short-term loan. The bill was referred to the Financial Institutions Committee on April 25, 2018. And from there no further action was taken and there are currently no plans to vote on this bill. The bill is listed as “Adjourned Sine Die” which means “without assigning a day for a further meeting or hearing”. Please see the following link for the full text of the bill. https://legiscan.com/MO/bill/HB2657/2018
The current law in Missouri is:
- According to the amendments in the law in 2006 the maximum amount of a payday loan should not exceed $500.
- One loan at a time is allowed and it is not prohibited for a lender to charge fees and interest. Loans are given for the term of 14-31 days.
- Interest rate should not exceed 75% for an amount of loan; the same interest is charged for every renewal.
- With all this APR in the state of Missouri is the highest – in some cases it amounts to 1950%.
- Lenders are also allowed to give 6 roll-overs to a borrower, provided that the latter is able to lessen to principle amount of a loan by 5% before every renewal.