Modifies standards regarding consumer installment lenders and loans

HB 2642 updates the rules for consumer installment lenders in Missouri, specifically targeting small, unsecured loans of $500 or less. The bill requires these lenders to obtain a state license and strictly limits the total interest and fees they can charge to a maximum of 36% annual percentage rate. It also mandates that loans have a minimum term of 14 days and a maximum of 31 days, while prohibiting lenders from disguising loans as sales or charging hidden application fees. Additionally, the law requires lenders to post clear notices about loan terms, allows borrowers to cancel loans within one business day, and limits the number of times a loan can be renewed to six times. Lenders must also assess a borrower's ability to repay before issuing a loan and face penalties or license revocation for failing to comply with these new regulations.