MO SB1135

Repeals section 408.512, RSMo and creates eight new sections (408.515-408.537) establishing a separate licensing framework for traditional installment loan lenders, requiring a $500 annual license fee per location from the Commissioner of the Division of Finance

Defines "traditional installment loan" as fixed-rate, fully amortized closed-end consumer loans that exclude auto title loans under 181 days, loans requiring full repayment within 91 days, loans with balloon payments, and loans requiring automatic bank withdrawals or payday repayment terms

Permits lenders to charge negotiated interest rates plus an origination fee of 10% of principal (maximum $100), late fees up to 5% or $15-$50 per installment after 15 days delinquency, and attorney fees up to 15% if collection litigation is required

Requires lenders to provide borrowers a 20-day right-to-cure notice before accelerating the loan or repossessing collateral after default, and prohibits deficiency judgments on loans under $500 or when unpaid balance at default is under $300

Preempts local governments from restricting traditional installment loan lenders' operations, except for ordinances existing as of August 28, 2016, and exempts Kansas City (home rule city with 400,000+ inhabitants in multiple counties) from preemption