This bill proposes the repeal of several existing sections of Missouri law related to small loans and enacts six new sections in their place. The new sections include provisions that regulate the interest rates and fees that lenders can charge, specifically capping the annual percentage rate at thirty-six percent. It also establishes guidelines for lenders, including requirements for licensing, disclosures to borrowers, and penalties for non-compliance. Notably, the bill prohibits lenders from using deceptive practices to evade these regulations and mandates that lenders consider the borrower's ability to repay the loan. Additionally, the bill includes a referendum clause, stipulating that it will be submitted to voters for approval in November 2026. The new legal language emphasizes the importance of transparency in lending practices and aims to protect consumers from predatory lending. The bill also outlines the consequences for lenders who fail to adhere to the new regulations, including potential misdemeanor charges and the suspension or revocation of their licenses.

Statutes affected:
Introduced (5145H.01): 367.105, 367.515, 408.101, 408.500, 408.505, 408.510