HB 1501 -- Payday Loans

Co-Sponsors:  Boucher, Jolly, Harding, Wilson (42), Curls,
Monaco, Campbell, Lowe

This bill applies to unsecured consumer loans of $500 or less in
which cash is advanced with an original term of 30 days or less
and a single payment is anticipated.

The bill:

(1)  Prohibits charges of more than $15 per $100 of principal for
the first 30 days and more than 3% per month of the outstanding
balance after the 30th day of the original loan;

(2)  Prohibits any other charges, including charges for cashing
the loan proceeds if given in check form;

(3)  Prohibits a lender from having more than two loans of this
type outstanding to any borrower at any one time;

(4)  Prohibits loans of this type from being repaid from proceeds
of another loan of this type;

(5)  Allows returned check charges;

(6)  Prohibits enforcement of the provisions of any contract for
payment of money subject to the bill when the contract is for
payment of money in excess of that allowed by the bill;

(7)  Applies to any creditor involved in any way in a contract
for payment of money as described in the bill or any person or
entity that is involved in procuring a loan subject to the bill
or that accepts a check or other negotiable instrument drawn on a
bank and payable on demand at maturity of the deferred deposit
loan, such as payday loans; and

(8)  Does not supercede any law that specifies a lower rate or
amount of charges.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am