Info from Missouri Div of Finance.
Date: Sat, 05/13/2006 - 09:44
Ok guys. Help me & tell me how you interpret this to work on a $500 payday loan w/ 2 rnwls:
I got this off the Missouri Div of Finance Website.
Sections 408.500, 408.505, and 408.506 make up the entire law concerning payday loans (a.k.a. “small, small loansâ€) 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% 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, applys daily interest calculations, etc. These sections contain some provisions which go well beyond most “consumer protectionsâ€: for example, 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 4 CSR 140-11.030 through 4 CSR 140-11.040.
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I got this off the Missouri Div of Finance Website.
Sections 408.500, 408.505, and 408.506 make up the entire law concerning payday loans (a.k.a. “small, small loansâ€) 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% 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, applys daily interest calculations, etc. These sections contain some provisions which go well beyond most “consumer protectionsâ€: for example, 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 4 CSR 140-11.030 through 4 CSR 140-11.040.
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Hi Lgall As per the state laws, I will not pay more than $375
Hi Lgall
As per the state laws, I will not pay more than $375 as interest on the $500 loan amount along with two renewal fees.
I will also check if the lender is licensed in the state and he is charging within the permissible interest caps.
The lender must also mark the account as "paid in full" after everything is paid off. Make sure that you have everything in writing.
