MO HB2677

Repeals section 408.512 RSMo and creates eight new sections (408.515-408.536) establishing a separate licensing framework for traditional installment loan lenders, requiring a $500 annual license fee per location from the Director of Finance

Defines "traditional installment loan" as fixed-rate, fully-amortized, closed-end consumer loans with minimum 181-day terms, excluding payday-style loans that require full repayment within 91 days, auto title loans under 181 days, or loans requiring preauthorized bank drafts

Caps origination fees at 10% of principal or $100 (whichever applies), limits late fees to 5% of the installment or $15-$50, and restricts attorney's fees to 15% of the amount due minus court costs

Requires lenders to provide written 20-day cure notice before accelerating loans or repossessing collateral, with borrowers able to cure defaults by paying overdue amounts plus delinquency charges

Prohibits local governments from restricting traditional installment loan lenders' operations, except in home rule cities with over 400,000 inhabitants located in more than one county, and authorizes civil penalties up to $1,000 per day for lender violations