Bill > HB1325

This bill modifies Missouri's consumer credit laws by establishing a maximum annual percentage rate (APR) of 36% for various types of loans, including unsecured loans, title loans, and consumer installment loans. The bill introduces new provisions to prevent lenders from circumventing the interest rate cap through various tactics such as disguising loan proceeds as sales transactions, using third-party credit arrangements, or charging additional fees outside of the APR calculation. It requires lenders to consider borrowers' financial ability to repay loans and implements stricter licensing and reporting requirements for short-term lenders. The bill mandates specific disclosure practices, including posting maximum interest rates in lending offices and providing borrowers with notices about loan terms. It also limits loan renewals, sets minimum and maximum loan terms, and restricts the total amount of outstanding loans to a single borrower. The proposed changes aim to protect consumers from predatory lending practices by creating more transparent and affordable lending standards. The bill will be submitted to Missouri voters for approval in the November 2026 election and will only take effect if approved by a majority of voters.

https://house.mo.gov/Bill.aspx?bill=HB1325&year=2025&code=R