MO HB1789

Establishes the "Missouri Nonrecourse Consumer Legal Lending Act" (sections 436.600-436.640) to regulate nonrecourse consumer legal lending transactions, where lending companies purchase rights to a portion of a consumer's legal claim proceeds in exchange for immediate funds.

Requires consumer legal lending contracts to include specific disclosures in 12-point bold font on the front page (total funds, itemized fees, total amount assigned) and mandatory warning language stating consumers owe nothing in excess of their recovery unless they violate the contract.

Limits fees to a maximum annual percentage rate of 10%, prohibits fees beyond 1,095 calendar days from the lending date, allows only semiannual compounding, and requires origination/delivery fees to be itemized in advertisements.

Prohibits attorneys from having direct financial interest in lending companies servicing their own clients, prohibits consumer lending companies from controlling legal claims, paying referral fees to attorneys, or requiring arbitration/class action waivers.

Requires consumer legal lending companies to register annually with the Missouri Department of Insurance, Financial Institutions and Professional Registration; violations constitute a class B misdemeanor (first offense), class A misdemeanor (second offense), or class D felony (subsequent offenses).