MO SB699

Non-bank lenders making unsecured loans of $500 or less must obtain an annual license from the director of finance for $300 per location, with federal Truth in Lending Act disclosures required on all loans.

Lenders may charge no more than $15 per $100 of principal for the first 30 days and each renewal, or 3% per month on balances after day 30, with no other charges permitted except return check fees.

Loans have a minimum 14-day term and maximum 31-day term, may be renewed no more than twice, and borrowers must reduce principal by at least 5% with each renewal until fully paid.

Lenders must post maximum annual percentage rates in their lobby and provide borrowers with a notice allowing cancellation without cost by returning full principal by the next business day.

The attorney general and division of finance director may issue cease-and-desist orders, pursue civil penalties up to $1,000 per day, and seek injunctions for non-compliance; licensees who violate provisions face suspension or revocation after a hearing.