Vetoed by Governor Jay Nixon

Vote Smart's Synopsis:

Vote to pass a bill that amends payday loan terms and interest rates.

Highlights:

• Prohibits a lender of unsecured loans of $500 or less from renewing or extending a loan to a borrower, unless the borrower uses an extended payment plan (Sec. A).

• Reduces the limit on the total interest and fees an unsecured loan lender can charge a borrower for any single loan from 75 percent to 35 percent of the original loan amount (Sec. A).

• Authorizes a borrower to enter into 1 extended payment plan for an unsecured loan during a 12 month period with certain conditions, including, but not limited to, the following conditions (Sec. A):
• The borrower invokes the plan prior to the loan’s due date;
• The borrower agrees to repay the loan over 1 of the following time periods:
• 60 days or less, if the borrower receives bi-monthly paychecks; or
• 120 days or less, if the borrower receives monthly paychecks; and
• The borrower’s debt loan will not accrue interest during the term of the plan.

• Prohibits an unsecured loan lender from charging any additional fees or interest on an outstanding loan if a borrower fails to make full payment by the due date of the original loan or the extended payment plan (Sec. A).

• Requires an unsecured loan lender to “conspicuously” post in the lobby of their office a notice stating that a borrower may participate in an extended payment plan, brochures containing the terms and conditions of the extended payment program are available, and the maximum interest rates and the fees charged per $100 loaned (Sec. A).

• Requires a lender who offers unsecured loans to Missouri residents through the internet to adhere to the same provisions as in-state lenders (Sec. A).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends payday loan terms and interest rates.

Highlights:

• Prohibits a lender of unsecured loans of $500 or less from renewing or extending a loan to a borrower, unless the borrower uses an extended payment plan (Sec. A).

• Repeals the 75 percent limit on the total interest and fees an unsecured loan lender can charge a borrower for any single loan (Sec. A).

• Authorizes a borrower to enter into 1 extended payment plan for an unsecured loan during a 12 month period with certain conditions, including, but not limited to, the following conditions (Sec. A):
• The borrower invokes the plan prior to the loan’s due date;
• The borrower agrees to repay the loan over 1 of the following time periods:
• 60 days or less, if the borrower receives bi-monthly paychecks; or
• 120 days or less, if the borrower receives monthly paychecks; and
• The borrower’s debt loan will not accrue interest during the term of the plan.

• Prohibits an unsecured loan lender from charging any additional fees or interest on an outstanding loan if a borrower fails to make full payment by the due date of the original loan or the extended payment plan (Sec. A).

• Requires an unsecured loan lender to “conspicuously” post in the lobby of their office a notice stating that a borrower may participate in an extended payment plan, brochures containing the terms and conditions of the extended payment program are available, and the maximum interest rates and the fees charged per $100 loaned (Sec. A).

• Requires a lender who offers unsecured loans to Missouri residents through the internet to adhere to the same provisions as in-state lenders (Sec. A).

Full Bill Text