Missouri Payday Loan Laws

Missouri residents suffer steep consequences when seeking the assistance of a payday loan. Their fees and interest rates are much higher than other states. Little is done to protect consumers in the state of Missouri.

• The APR in Missouri can be as much as 1980%
• Fees cannot exceed 75% of the original loan amount
• The minimum loan term is 14 days
• The maximum loan term is 31 days
• The maximum loan amount is $500
• Lenders can sue default clients
• Extensions and renewals are prohibited

In Missouri, no background checks are done on companies wishing to obtain a payday loan license. The only steps that are required are that an application be filled out and a fee is to be paid. Few of the payday loan companies in Missouri are actually Missouri based companies.

One strange law in Missouri allows nursing homes to carry a payday loan license. This allows the nursing home to provide a payday loan to its employees. Loans cannot be made to residents. The nursing homes are permitted to make paycheck deductions for the repayment of the payday loan.

It has been found that many of these payday loan facilities are practicing improper business ethics. Many lenders are taking advantage of their customers. With these lenders not following the regulations set in place, consumers place hundreds of complaints each year with the Better Business Bureau.

No consideration is taken for the borrower as to their ability to repay what they have borrowed. It is only up to the lender to determine if their income qualifies for the amount requested. Borrowers are not well protected at all in the state of Missouri when it comes to payday loans. There are dozens of facilities that do not practice good business.

Although the loans cannot be extended, some still will. If a lender offers an extension, renewal or rollover in the state of Missouri, walk away and do not accept it. This may be the only protection that you have as a borrower to not have a lender go behind your back and deposit your check anyway. This can end up costing you more than you could have ever imagined. It is your responsibility as a borrower to repay the loan on time, or reap the consequences later.

These lenders prey on the poor. They entice financially troubled consumers with what seems like a great deal. Borrow now and pay later, when in fact, the borrower has no ability to repay the loan.

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