Payday Lenders

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 percent 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. Additionally, 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.

Missouri law requires the consumer credit section to publish a report every two years on the payday lending industry. See our Publications and Reports page to view the report.

REMINDER: License renewals are due December 31. Please see the link below for renewal information.

• Licensing application packet
• Laws & Regulations
• APR calculation formula
• Renewal information
• Sample 500 note
• Sample notice of maximum rates charged