Missouri Increases Allowable Short-Term Loan Fees


On September 11, the Missouri General Assembly voted to override the governor’s veto and enact HB 329, which, among other things, increases the allowable fees on short-term loans. The bill increases the maximum fee that a creditor can charge on a loan for 30 days or longer, other than open-end credit, from 5% to 10% of the principal amount of the loan, up to $75. Similarly, for open-end credit contracts tied to a transaction account in a depository institution with a contract that provides for loans of 31 days or longer, the bill increased maximum credit advance fee from the lesser of $25 or 5% of the credit advanced to the lesser of $75 or 10% of the credit advanced. The bill also (i) requires the Division of Finance and the Division of Credit Unions to report annually certain information about state financial institutions in each county or city with a population of more than 250,000, including the number and type of violations, a statement of enforcement actions taken, the names of institutions found to be in violation, the number and nature of complaints received, and the action taken on each complaint, and (ii) allows the division directors to conduct consumer hearings if the director has reason to believe that a violation has occurred, removing the requirement that the director’s decision be based on an examination, an investigation of a complaint that has not been resolved by negotiation, a report by the financial institution, or any public document or information. Governor Jay Nixon sought to halt the legislation in July, citing concerns of the substantial increased cost to consumers.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.