Missouri Financing Institutions
The licensing provisions for purchasing or otherwise acquiring retail contracts secured by goods other than motor vehicles are found in §§364.010-364.070. This is "third-party paper," which is frequently referred to as "indirect loans" or "dealer paper." The typical transaction involves a dealer agreeing to give the merchandise to the buyer in exchange for the buyer's promise to make payments. The dealer may then sell the contract. Note that a dealer, without being licensed, may hold and collect his own contracts. However, if the dealer collects under any name other than its own, a license is needed (see 20 CSR 1140-3.030). Also note that many others do not need a license: banks, trust companies, consumer loan licensees per §§367.100 et seq., sales finance licensees per Chapter 365, or "a person who makes only occasional purchases of" such contracts.
The substantive law concerning rates, refunding, etc. for retail credit financing is found in §§408.250-408.370. The consumer protection provisions concerning rights to cure defaults, limitations on repossessions, etc. found in §§408.551-408.562 apply. Related regulations are found at 20 CSR 1140-3.020 through 20 CSR 1140-3.041.
PLEASE NOTE: The licensing fee for applications and renewals has increased to $500.