MO HB2116

Lenders making unsecured loans of $500 or less must obtain a license from the division of finance for an annual fee of $300 per location and comply with federal Truth in Lending Act disclosures.

Borrowers cannot have more than one unsecured loan of $500 or less outstanding at any time, and lenders cannot make new loans to a borrower within two weeks of a previous loan being paid off.

Lenders may charge a maximum simple annual interest rate of 36% plus a loan setup fee equal to 5% of the loan amount (maximum $25), with no other fees permitted including late fees.

Loans must have a minimum 90-day repayment term with required payments every two weeks to fully amortize the loan, eliminating the previous 14-31 day short-term renewal structure.

The Attorney General may bring civil actions against non-compliant lenders in circuit court seeking injunctions, civil penalties up to $1,000 per day, restitution, and other relief; loans advertising or offered at nursing homes or residential care facilities are prohibited.