MO HB403

Increases the loan amount threshold from $500 to $750 for licensable unsecured loans made by non-bank lenders requiring a license from the division of finance.

Limits loan renewals to a maximum of two times (reduced from six) and requires borrowers to reduce principal by at least 5% with each renewal.

Establishes that borrowers cannot have more than one unsecured loan of $750 or less outstanding at any time and cannot take a new loan within one day of paying off a previous one; total outstanding debt across all lenders cannot exceed $750.

Caps total accumulated interest and fees at 75% of the initial loan amount for the entire loan term including all renewals.

Creates a statewide real-time compliance system administered by the division of finance (or contracted third-party provider) to record payday loan transactions and verify borrower eligibility, with full implementation required by January 1, 2014.