HB 964 -- Payday Loans

Sponsor:  Burnett

This bill limits the interest and fees that may be charged for
unsecured loans less than $500.  Current law allows lenders to
charge interest of up to 75% for the term of the loan, with the
term for these loans limited to between 14 and 31 days.  The bill
limits the interest and other charges to a total of $15 per $100
of principal for the first 31 days of the loan, and interest of
not more than 3% per month thereafter, including any loan
extensions by any affiliated lender.  The bill repeals language
that permits lenders to issue a new loan to pay off the original
loan, which allows the lender to once again charge 75% interest.

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