Missouri 2022 Regular Session

Missouri House Bill HB1846

Introduced
1/5/22  

Caption

Changes the laws regarding consumer credit interest rates

Impact

Should HB1846 be enacted, it would bring about a major shift in the management of consumer credit by imposing stricter limitations on the lending practices of non-bank financial institutions. By enforcing these interest rate caps, the law aims to reduce the burden on low-income borrowers who often rely on short-term loans to meet immediate financial needs. The legislation stresses the need for transparency and responsible lending, including mandated disclosures that must be provided to borrowers regarding the terms of their loans.

Summary

House Bill 1846 proposes significant changes to the regulation of consumer loans in Missouri. The bill repeals existing regulations within several sections of state law and enacts new provisions aimed at regulating small loans. Notably, the bill establishes a cap on interest rates and fees that can be charged on unsecured consumer installment loans, setting the maximum annual percentage rate (APR) at thirty-six percent. The intent is to protect consumers from predatory lending practices and ensure fair lending standards are maintained throughout the state.

Contention

The proposals contained within HB1846 have raised some points of contention among lawmakers and stakeholders. Proponents argue that the bill is essential for consumer protection and will help to eliminate exploitative lending practices that disproportionately affect vulnerable populations. Conversely, opponents express concerns that such regulations may lead to fewer options for borrowers and could push some lenders to exit the market, thereby limiting access to credit for individuals who rely on these services in times of financial hardship. These perspectives highlight the ongoing debate regarding the balance between consumer protection and market availability in the financial services sector.

Companion Bills

No companion bills found.

Previously Filed As

MO HB221

Changes the laws regarding consumer credit interest rates

MO HB2685

Changes the laws regarding consumer credit interest rates

MO HB1325

Changes the laws regarding consumer credit interest rates

MO HB2642

Modifies standards regarding consumer installment lenders and loans

MO HB217

Modifies standards regarding consumer installment lenders and loans

MO SB624

Modifies interest rates for small loans

MO SB1071

Modifies interest rates for small loans

MO SB368

Modifies interest rates for small loans

MO HB4581

Consumer credit: interest rates; credit card interest rates; provide cap. Amends sec. 4 of 1995 PA 162 (MCL 445.1854).

MO HB692

Modifies interest rates of consumer installment loans

Similar Bills

No similar bills found.