Missouri residents know how rough the job market is today. High unemployment and underemployment rates are making it difficult for Missouri residents to prepare for rainy day emergencies. When something goes suddenly wrong, such as a broken down vehicle, residents may be left stranded till their next payday. This doesn’t have to be the only solution! Missouri residents have the option of applying for a Missouri payday loan. Each state has regulations and laws that are specific to that state and Missouri is no different. Below is a brief listing of some of the rules that apply to borrowers of a Missouri payday loan. Keep in mind that the rules listed below may be different for each state.
1. Licensed Lender Requirements
All lenders in the state of Missouri are required to register and become licensed to ensure they meet the standards of Missouri’s lending requirements. When applying for a Missouri payday loan your lender must provide their Missouri state licensing identification number. These licensing requirements are designed to safe guard borrowers from borrowing from deceptive lenders.
2. Loan Limit Amounts
A Missouri payday loan limit is set at $500 per loan. Missouri law does not stipulate the amount of payday loans a borrower may take out at any given time. This is typically regulated by your lender’s own personal rules. Lenders will base this decision on your income and ability to repay, but each individual loan is capped at the $500 maximum.
3. Loan Time Frames and Extensions
The purpose of a Missouri payday loan is to advance you the cash you need to bridge the gap till your next payday. This means that your repayment is typically scheduled to be due on your next payday. Lenders will usually require that you authorize an automatic debit from your bank account or write a personal check that is dated to be withdrawn on the agreed upon repayment date. Under Missouri law, repayment of your payday loan can range between 14 and 31 days. Of course your lender may extend this in the event you notify them that you are unable to pay. In this circumstance, the lender can extend your loan up to six times. This is the maximum. Each time your loan is extended, you are required to reduce your loan balance by 5%. Failure to do so will result in a denial of your loan extension.
4. Missouri Payday Loan Fees
Currently, the state of Missouri has no specific fee limitations in place. The only stipulation made by Missouri state law is that a lender cannot charge more than a 75% fee on any one loan or loan renewal. Missouri recognizes a freedom to contract between parties, thus the lender and the borrower are free to enter into Missouri payday loan contracts on the fee terms that the parties agree upon, as long as they are not in excess of the 75%. This makes it advisable for potential borrowers to shop around before they decide on a lender, since each lender is able to set the rate of fees that you will ultimately be responsible for paying.
5. Civil and Criminal Charges
Missouri payday loan borrowers are subject to civil charges on their payday loan defaults. In some cases, borrowers can even be found guilty of criminal charges if it is demonstrated that borrowers purposely cancelled repayment checks or provided fraudulent information. Lenders may also be subject to civil and criminal penalties if they are found to be in violation of state lending laws.
The bottom line is that Missouri payday loan regulations are drafted in such a way that it is in the best interest of the borrower to do comparisons of lenders before deciding to borrow.