Bill Text: MO HB2130 | 2014 | Regular Session | Engrossed
Bill Title: Changes the laws regarding open-end credit plans
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2014-04-28 - Public Hearing Held (S) [HB2130 Detail]
Download: Missouri-2014-HB2130-Engrossed.html
SECOND REGULAR SESSION
[PERFECTED]
HOUSE COMMITTEE SUBSTITUTE FOR
97TH GENERAL ASSEMBLY
6395H.03P D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 408, RSMo, by adding thereto one new section relating to open-end credit plans.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 408, RSMo, is amended by adding thereto one new section, to be known as section 408.471, to read as follows:
408.471. 1. For the purposes of this section, "open-end credit" means credit extended by a lender under a plan in which:
(1) The lender reasonably contemplates repeated transactions;
(2) The lender may impose a finance charge from time to time on an outstanding unpaid balance; and
(3) The amount of credit that may be extended to the borrower during the term of the plan, up to any limit set by the lender, is generally made available to the extent that any outstanding balance is repaid.
2. This section shall apply to open-end credit plans by lenders other than banks, trust companies, credit unions, savings banks, and savings and loan companies. Sections 408.500, 408.505, and 408.510 shall not apply to open-end credit made under this section.
3. Entities making open-end credit under this section may contract for and receive simple interest on the unpaid principal balance at rates agreed to by the parties, in addition to any fees permitted in accordance with subsection 6 of this section.
4. When making or negotiating open-end credit, a lender shall consider the financial ability of the borrower to reasonably make payments on the open-end credit plan in the time and manner specified in the open-end credit plan. All records shall be retained at least two years.
5. Lenders extending credit under open-end credit plans under this section shall be subject to the provisions of sections 408.551 to 408.562.
6. No further or other charge or amount shall be directly or indirectly charged, contracted for, or received for interest, service charges, or other fees as an incident to any open-end credit plan made by a lender subject to this section except:
(1) An annual fee not to exceed fifty dollars;
(2) A credit advance fee of up to the lesser of seventy-five dollars or ten percent of the credit advanced from time to time from the line of credit; such credit advance fee may be added to the open-end credit outstanding along with any interest;
(3) A minimum charge for each scheduled billing period under the open-end credit plan during any portion of which there is an outstanding unpaid indebtedness under the open-end credit plan;
(4) If the contract so provides, a charge for late payment on each minimum payment in default for a period of not less than fifteen days in an amount to not exceed five percent of the minimum payment due or fifteen dollars, whichever is greater, not to exceed fifty dollars. If the contract so provides, a charge for late payment on each twenty-five dollars or less scheduled payment in default for a period of not less than fifteen days shall not exceed five dollars;
(5) If the agreement so provides, charges assessed by any institution for processing a returned payment plus a handling fee of not more than twenty-five dollars;
(6) The lawful fees actually and necessarily paid out by the lender to any public officer for filing, recording, or releasing in any public office any instrument securing the open-end credit plan, which fees may be collected when the loan is made or at any time thereafter;
(7) Reasonable towing costs and expenses of retaking, holding, preparing for sale, and selling any personal property in accordance with section 400.9; and
(8) If the agreement signed by the borrower provides for attorney’s fees, and it is necessary to bring suit, such attorney’s fees may not exceed fifteen percent of the amount due and payable under such agreement together with any court costs assessed. The attorney’s fees shall only be applicable if the agreement is referred for collection to an attorney and is not handled by a salaried employee of the holder of the agreement.
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