Missouri Revised Statutes













Chapter 408

Legal Tender and Interest

←408.510

Section 408.512.1

408.550→

August 28, 2015

Loans by traditional installment loan lenders.

408.512. 1. Any traditional installment loan lender licensed under

sections 367.100 to 367.200 or section 408.510 shall be permitted to make

loans and charge fees and interest as authorized under sections 408.100,

408.140, and 408.170.



2. No charter provision, ordinance, rule, order, permit, policy,

guideline, or other governmental action of any political subdivision of the

state, local government, city, county, or any agency, authority, board,

commission, department, or officer thereof shall:



(1) Prevent, restrict, or discourage traditional installment loan

lenders from lending under sections 408.100, 408.140, and 408.170;



(2) Prevent, restrict, or discourage traditional installment loan

lenders from operating in any location where any lender who makes loans

payable in equal installments over more than ninety days is permitted; or



(3) Create disincentives for any traditional installment loan lender

from engaging in lending under sections 408.100, 408.140, and 408.170.





The provisions of this subsection shall not apply where a charter provision

or valid ordinance as of August 28, 2014, expressly applies to traditional

installment loan lenders.



3. As used in this section, the following terms shall mean:



(1) "Fully amortized", the principal, defined as amount financed

under the federal Truth in Lending Act, and the scheduled interest, defined

as finance charge under the federal Truth in Lending Act, are repaid in

substantially equal multiple installments at fixed intervals to fulfill the

consumer's obligation;



(2) "Traditional installment loan", fixed rate, fully amortized

closed-end extensions of direct consumer loans. However, if any of the

following are true, the transaction is not a traditional installment loan:



(a) The transaction has a repayment term of one hundred eighty-one

days or fewer and is secured by the title to the borrower's motor vehicle

or auto;



(b) The transaction requires that the full amount of the credit

extended together with all fees and charges for the credit be repaid in

ninety-one days or fewer;



(c) The transaction's scheduled repayment plan contains one or more

interest-only payments or a payment that is more than ten percent greater

than the average of all other scheduled payment amounts;



(d) The transaction, at origination, requires the borrower:



a. To agree to a preauthorized automatic withdrawal in the form of a

bank draft, a preapproved automated clearing house or its equivalent;



b. To agree to an allotment or an agreement to defer presentment of

one or more contemporaneously-dated or postdated checks; or



c. To repay the loan in full at a borrower's next payday or other

recurring deposit cycle, where the repayment is connected with a bank

account;



(3) "Traditional installment loan lender", a licensee under sections

367.100 to 367.200 or section 408.510 whose direct consumer loans are

limited only to traditional installment loans.



4. Nothing in this section shall apply to or preempt any ordinance

governing installment lenders, or any amendment to any such ordinance, in a

home rule city with more than four hundred thousand inhabitants and located

in more than one county.



(L. 2014 S.B. 866)



*Effective 10-10-14, see § 21.250. S.B. 866 was vetoed July 10, 2014.

The veto was overridden on September 10, 2014.







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