Bill > HB1210

This bill amends Missouri state law to regulate payment transaction fees charged by debt collectors, including attorneys and law firms, when consumers use credit cards or electronic payment methods. The bill allows debt collectors to collect a payment transaction fee, but strictly limits this fee to the lesser of $25 or 3% of the total payment amount. Before completing a transaction, debt collectors must disclose three key pieces of information: (1) that a payment transaction fee will be collected, (2) the specific amount or calculation method of the fee, and (3) at least one alternative payment method that does not incur a fee. The bill also provides a sample notice that debt collectors can use to comply with these disclosure requirements, which must clearly state the fee amount, explain the percentage calculation, and inform the payer of no-fee payment alternatives. This legislation aims to provide transparency and protect consumers from potentially excessive payment processing fees while still allowing debt collectors to recoup reasonable transaction costs.