MO SB295

Repeals and replaces sections 408.500 and 408.505 to regulate unsecured loans of $500 or less by lenders other than banks, credit unions, and savings institutions; requires annual $300 licensing fee per location from the director of finance.

Eliminates loan renewal provisions and instead requires 90-day repayment terms with bi-weekly payments that fully amortize the loan, prohibits lenders from making multiple concurrent loans to same borrower and from lending within one week of borrower satisfying previous $500 or less loan.

Caps total accumulated interest and fees at 75 percent of initial loan amount for entire loan term; requires Truth in Lending Act disclosures, written consent to loan terms, and borrower notice of cancellation rights through next business day.

Establishes enforcement powers for director of finance and attorney general including cease and desist orders, civil penalties up to $1,000 per day, license suspension/revocation, and injunctive relief; bars lenders from pursuing bad check claims and limits remedies to breach of contract claims.

Creates pilot program within division of finance to develop real-time statewide compliance system for payday lenders to record loan transactions, with full implementation by September 1, 2011, and preliminary and final reports due by March 1 and June 1, 2012; program sunsets August 31, 2012.