Missouri Auto Title Loan Resources
Auto Title Loan Licensing Packet:
Missouri Auto Title Loan Licensing Packet
Additional State links:
Missouri Department of Finance
Missouri Consumer Credit Companies
Missouri Auto Title Regulated Entities
Missouri Auto Title Loan Quick Reference Guide
Missouri Auto Title Repossion Guidelines
Missouri Auto Title Loan Letter of Credit
Missouri Auto Title Loan Surety Bond
Missouri Auto Title Loan Sample Contract
Burrell Sample Auto Title Loan Contract
Missouri Auto Title Loan Maximum Rates
In the state of Missouri the auto-title loan industry is regulated by the Division of Finance. They do not conduct annual audits as is the case with other traditional lenders. Missouri law does not give the Division of Finance explicit authorization to suspend or revoke a auto-title lender's license who violates state law. Additionally, there are only vague requirements for lender examinations.
The governor of Missouri did sign into law a bill mandates that title lenders refund the difference between the value of the loan and the amount for which a repossessed car is sold.
Auto title lenders can charge 1.5 percent per month in interest and unlimited fees. Annual percentage rate equivalents for auto title loans often exceed 300 percent, Procter said.
For Missouri, you can do Title Loans on either a daily interest basis, or on an installment loan (amortized loan) basis.
Title Lenders (Sections 367.500-367.533 RSMo)
Sections 367.500-367.533 comprise the title loan law, both for licensing and for substantive provisions such as consumer rights,
refunding, etc. Loans made pursuant to this section are secured by titled personal property, primarily automobile titles, but
they are different from traditional auto secured loans. Title loans are limited in size, and require principal reductions by
the borrower. A lender may not use the title to a mobile home as security for one of these loans. An entity wishing to make
title loans must be licensed by the Division of Finance and a loan made under this act is subject to disclosure obligations,
term and renewal limits, and various consumer protections such as posted rates and daily interest computations.
The consumer protection provisions of sections 408.551-408.562 do apply. Regulations for title loans are found in 20 CSR 1140-29.010.