MO HB1393

Requires lenders making unsecured loans of $500 or less to obtain an annual license from the director of finance for $300 per location, with exemptions for pawnbrokers, credit unions, and certain check-cashing transactions.

Limits loans to 14-31 day terms with accumulated interest and fees capped at 75% of the initial loan amount; borrowers must reduce principal by at least 5% with each renewal and cannot have more than one such loan or $500 total outstanding across all lenders.

Prohibits lenders from making loans within one day of a borrower paying off a previous loan and requires lenders to consider the borrower's financial ability to repay; lenders must provide specific disclosures including loan duration, payment dates, and exact interest and fees at signing.

Establishes that breach of contract (rather than bad check laws) is the sole remedy for lenders when a check given for loan repayment is not honored.

Creates a statewide real-time compliance database operated by the Division of Finance or a contracted third-party provider to track payday loan transactions and verify consumer eligibility, with full implementation required by January 1, 2013.