MO SB476

Lenders making unsecured loans of $500 or less must obtain a license from the director of finance at an annual fee of $300 per location, with exemptions for pawnbrokers, credit unions, banks, and similar institutions.

Borrowers must receive a minimum 90-day repayment period with payments required every 15 days, and total accumulated interest and fees cannot exceed 75% of the initial loan amount for the entire loan term.

Lenders may make only one active loan per borrower at a time and cannot make a new loan within one day of a borrower paying off a previous loan; loans can be renewed only once with a mandatory 5% principal reduction.

Lenders must post maximum annual percentage rates and provide borrowers written notice that they may cancel without costs by returning the full principal by the next business day.

Creates a real-time statewide compliance system under the Division of Finance to record payday loan transactions, requiring full implementation by January 1, 2013.