Just curious, why is there no missouri forum, Does it mean all the missouri bankers up and moved and left me here by myself?

Liz, I would say there haven't been many inquiries relating to MO law. I know I have only seen 3 or 4.

But if you ask nicely, they might give you one. They did it for Ohio (although I'm embarassed that I proposed and nobody's posted in it yet! I may have to go make something up and answer myself just to have a post in there.)

Liz (or any other MO expert!), can you confirm/correct mu understanding of MO state rate ceilings for motor vehicle retail installment sales, which is:

* Cash price $7500.00 or less= no rate cap
* Cash price greater than $7500.00= 24.00% (criminal usury cap)

Thanks!!!

As of 8/28/02, there is not a usury limit per the Motor Vehicle Time Sales Act, Ch. 365, RSMo.

Previously, there was, but it actually applied if the sale (not the loan) was $7,500 or less, not if it was over $7,500. The rate limit is stated in add-on terms, and their translation to a simple interest rate varies depending on the term. If the model year of the vehicle purchased is two years old or less, the limit is 10%, and if the vehicle is older than that, the limit is 13% (again, those are add-on rates).

Thanks for the info, Anon.

I'll have to do some more homework on this. My understanding is that there is a usury law that mandates a 24.00% APR cap that applies when there are no other specific statutes governing a transaction. Thus, that 24% cap doesn't apply to motor vehicle retail installment contracts with a cash sale price of $7500 or less because they are regulated by the separate motor vehicle time sale statutes. However, since contracts with a cash sales price of $7500 or greater are unregulated, the 24% usury cap applies.

My understanding is that the only loans in Missouri that currently have a usury limit are those that are for an agricultural purpose and < $5,000 (the limit is 10%). Variable-rate loans not governed by another statute were previously regulated, as were indirect motor vehicle sales, but those have changed recently. I am not an expert on this, so I could be wrong.

Call Mike Noblett at the Missouri Bankers Association 573 636 8151--excellent resource.

I also noticed no "MO" forum..Then I thought that maybe everyone except me already knew everything..:):)or, they were too busy saying "Show-Me" where it's written that.....you get the picture...