HB 423 -- Payday Loans

Sponsor:  Whorton

This bill changes the laws regarding unsecured loans of $500 or
less.  The bill:

(1)  Limits the interest and other fees that may be charged on
the loans to $15 for the first $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 for injunctions,
rescission of loan contracts and restitution, and civil penalties
for violations; 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, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am