Get Finance news fast
by Joining our Weekly
Bulletin mailing list

Missouri Division of Finance     
301 W. High Street
Room 630,
P.O. Box 716
Jefferson City, MO  65102
Phone: 573 751-3242
Fax: 573 751-9192
E-Mail: finance@dof.mo.gov

Payday Lenders (Sections 408.500-408.506 RSMo)

Sections 408.500, 408.505, and 408.506 make up the entire law concerning payday loans (a.k.a. "small, small loans") which are loans of $500 or less.  Such lenders must be licensed by the Division of Finance.  Sections 408.500-408.505 subject this type of lender to a host of consumer safeguards, i.e., places a 75% cap on interest and fees on the initial loan and renewals, limits renewals to no more than six, limits the term of the loan to 14-31 days, applies daily interest calculations, etc.  These sections contain some provisions which go well beyond most "consumer protections": for example, the lender must conspicuously post rates and a borrower who repays a loan before the close of the lender's next full business day pays no interest or fees.  Related regulations are found at 20 CSR 1140-11.030 through 20 CSR 1140-11.040.