Bill > HB692

This bill modifies Missouri state law regarding consumer installment loans, specifically focusing on small, short-term loans. The bill reduces the maximum accumulated interest and fees a borrower can be charged from 75% to 65% of the initial loan amount for the entire loan term and its renewals. It establishes that these loans must have a minimum term of 14 days and a maximum term of 31 days, regardless of whether it's an original or renewed loan. The legislation limits a lender to charging only simple interest and specific fees, and prevents lenders from having more than $500 in outstanding loans to the same borrower at one time. The bill also prohibits lenders from using creative financial arrangements to circumvent these interest rate and fee restrictions, such as disguised sales leases or catalog sales. Additionally, the law includes provisions that protect borrowers from being required to take out new loans to repay existing ones and prevents state employees and judges from enforcing contracts that violate these guidelines. The bill aims to provide more consumer protection in the small-dollar lending market by limiting potential predatory lending practices.

https://house.mo.gov/Bill.aspx?bill=HB692&year=2025&code=R