What is a LEGAL interest fee for a PDL?

According to Missouri PDL laws, APR rate can go upto 1980%. That is, $75 will be charged on a loan of $100 for a period of 14 days.

Hi Kelly,

Have you posted your pdl's in another thread? If not could you please tell us:
Name of company
internet or storefront
amount borrowed
amount paid back including fes's

A pdl must have a license in MO to be legal:
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Missouri State Information

Legal Status: Legal

Citation:
Mo. Stat. Ann. ???? 408.500 et seq.; Mo. Code Regs. Ann. Tit. 4 ???? 140-11.010 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-31 days
Maximum Finance Rate and Fees: Not Specified (No borrower shall be required to pay a total amount of accumulated interest and fees in excess of 75% of the initial loan amount on any single authorized loan for the entire loan term and all authorized renewals. Otherwise, interest is set pursuant to small loan law which provides that parties may set rate by contract.)
Finance Charge for 14-day $100 loan: $75
apr for 14-day $100 loan: 1980%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Six (borrower must reduce principal amount of loan by 5% or more upon each renewal)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: NSF fee; Collection costs (including court costs and reasonable attorney's fees) Licensee cannot use a series of ACH transactions to collect a single check.
Criminal Action: Prohibited (Unless check returned due to closed account or stop-payment by maker)

Where to Complain, Get Information:
Regulator: Missouri Division of Finance
Address: Consumer Credit Section, P. O. Box 716 301 W. High Street Jefferson City MO 65102
Phone: (573) 751-3242
Fax: (573) 751-9192
Regulatory Contact: Joe Crider,, Supervisor, Consumer Credit


Emails to and from the DFI:

Sent: Friday, October 19, 2007 4:15 PM
To: Crider, Joe
Subject: Payday Loan Question

Hi Joe,

I'm trying to find an answer to a question regarding internet based payday loan companies. Do internet based payday loan companies need to be licensed by MO to lend legally in MO? Or can they be licensed in their home state as long as they don't have a physical location in MO? I have several payday loans and they are all licensed in other states. They say they don't need a MO license, or to follow the laws of MO. Is that correct?

Thank you!

Reply:

From: Crider, Joe
Sent: Tuesday, October 30, 2007 9:35 AM
To:
Subject: RE: Payday Loan Question

Ms ,

Our interpretation of the law is that these lenders do need to follow the laws of our state. We are introducing legislation in the upcoming session that would be more specific about this requirement. To that end, we have dozens of internet lenders from other states licensed at this point in time.
If you would provide me with the web sites or contact information for these lenders I will advise them of our position in a letter.

Joe Crider
Supervisor of Consumer Credit
State of Missouri

What does this mean?

Internet based companies do need an MO license.

New laws may be coming soon.

Fees and interest can not be more then 75% of total loan amount.

6 rollovers are allowed.

No criminal prosecution for closing your bank account.


Looks like IPDLs are legal in Missouri, if they hold a Missouri license.You can search for licensing info on each of them at the Missouri Division of Finance website. I'm betting that at least one of those is illegal.
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