Bill > HB217

This bill modifies standards for consumer installment lenders and loans by establishing new regulations and limits on lending practices in Missouri. The bill introduces a 36% annual percentage rate (APR) cap on interest, fees, and finance charges for loans, and prohibits lenders from using various tactics to circumvent these limits, such as disguising loan proceeds as cash rebates or creating complex financial arrangements to avoid rate restrictions. It requires lenders to be licensed, with an annual fee of $600 per location, and mandates that lenders consider a borrower's ability to repay the loan. The bill also establishes specific rules for loan renewals, including a requirement that borrowers reduce the principal by at least 5% on each renewal, with no more than six total renewals allowed. Lenders must provide clear disclosure of rates and terms, including a notice that borrowers can cancel the loan without cost by returning the full principal balance by the close of the next business day. The bill defines consumer installment loans as secured or unsecured loans payable in at least four substantially equal installments over a minimum of 120 days. Importantly, the bill will be submitted to voters in the November 2026 election for final approval.

https://house.mo.gov/Bill.aspx?bill=HB217&year=2025&code=R