Bill > SB1071

This bill modifies the interest rates and fees for small loans in Missouri. It repeals and replaces sections of state law related to consumer credit loans, title loans, and unsecured loans of $500 or less. The key provisions are: 1. Limits the combined interest, fees, and finance charges on any loan to an annual percentage rate (APR) of 36%. Prohibits the use of any device or subterfuge to intentionally evade this requirement. 2. Requires lenders to consider the borrower's financial ability to reasonably repay the loan and maintain records for at least two years. 3. Maintains the minimum 14-day and maximum 31-day loan term for unsecured loans under $500, and limits borrowers to no more than $500 in such loans outstanding with the same lender at one time. 4. Allows consumer installment lenders to charge interest and fees in accordance with state law, and subjects them to the same regulations as other consumer credit lenders. The bill is submitted to Missouri voters for approval in the November 2024 election before taking effect.