Changes the laws regarding consumer credit interest rates

HB 2685 updates Missouri laws to regulate consumer credit interest rates and strengthens oversight of short-term lending. The bill caps the combined interest, fees, and finance charges on loans at an annual percentage rate of 36% and prohibits lenders from using deceptive tactics to evade these limits. It requires small unsecured lenders to obtain a state license, post clear notices about loan terms, and implement a rule that borrowers must reduce their principal debt by at least 5% with each loan renewal, with a maximum of six renewals allowed. Additionally, the legislation mandates that loans have a minimum term of 14 days and a maximum term of 31 days, while giving the state finance director authority to suspend licenses or issue fines for violations.