Payday Loan Laws in Missouri
There are currently more than 1256 registered short-term loan offices in the “Show Me” state and every other year the Better Business Bureau (BBB) reviews the payday loan laws in Missouri. They take the time to review the company registrations, survey customers, review current laws and monitor consumer complaints.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for Missouri Payday Loans is provided for your convenience.
The payday advance industry as a whole continues to educate consumers on the proper use of this type loan, while still providing a product that consumers demand.
Overview of Payday Loan Laws in Missouri
Some laws and regulations vary between jurisdiction in the state but all unsecured loans of 500 or less are governed by the regulations 20 CSR 1140-11.030 and 20 CSR 1140-11.040, and more specifically by Sections 408.500 to 408.506 of the statutory codes. Current highlights of these regulations include:
* Maximum loan amount of $500 from a company or its branches
* Loan term to be 14 to 31 days
* Maximum Interest Rate to be established by contract between client and lender
* 6 rollovers are allowed but to qualify for a rollover the consumer must reduce the principal amount of the loan by 5%.
* Maximum Charges per $100 shall not exceed $75. This includes all fees, interest and collection fees. The maximum APR for a $100, a 14-day loan cannot exceed 1980%.
* While there are no limits on the number of payday advance loans a consumer may
have, companies are restricted to loaning no more than $500 in total loans per consumer
through all of its affiliates.
* Normal collections costs for may be included in the case of delinquent loans.
However, in the case where loans are repaid through ACH transactions, single checks
must be collected in a single transaction.
* Criminal action is only allowed when an account has been closed or the check presenter
ordered a stop payment.
The open interest rate allows companies to compete fairly and is designed to keep
rates low through competition. However, consumers must be aware of additional fees
that may not be as apparent as an advertised interest rate. Borrowers must be aware
of all fees associated with their loans in order to make a truly informed decision.
The Missouri Division of Finance is charged with overseeing the industry in the
state and at the end of October 2009 there were more than 2600 companies they are
tasked with monitoring. These companies include retail credit companies, motor vehicle
time sales, consumer credit agencies, installment payment lenders, payday loan offices,
title loan companies, premium financiers, credit repair agencies and the sale of
checks (money orders, money transmitters, value cards and bill paying agencies).
There is tremendous pressure on the agency to monitor activities but with such a
wide array of services available, it is very difficult. This means that consumer
awareness and education about the Payday Loan Laws in Missouri falls squarely on
the shoulders of the industry.
Take a look at the benefits of applying for Online Loans if available in your state.