Payday Loans and Cash Advance in Missouri

Legal, $500 cap, up to six renewals. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Missouri.

Is a Cash Advance Legal in Missouri?

Payday loans are legal in Missouri. Lenders operate under Sections 408.500 to 408.506 of the Missouri Revised Statutes, which cover unsecured loans of $500 or less, and they must hold a license from the Missouri Division of Finance. The law sets a loan term of 14 to 31 days, allows up to six renewals, and caps the interest and fees you can be charged over the life of a single loan, renewals included, at 75 percent of the original amount. Within that ceiling Missouri does not set a per-loan fee, so lenders set their own price. The Division of Finance's 2023 report to the General Assembly found an average loan of $307.33 at an average rate of 365.07 percent APR, which works out to about $43 in interest and fees on a 14-day loan. For a borrower this means the loan is quick and legal, but expensive, and the renewal rules matter more than the headline fee: each renewal has to cut the principal by at least 5 percent, and after six renewals the loan must be paid off. You can also cancel any payday loan at no cost by returning the principal before the close of the lender's next full business day.

The governing law is Missouri Revised Statutes, Sections 408.500 to 408.506 (unsecured loans of $500 or less) (RSMo 408.500, 408.505, 408.506; 20 CSR 1140-11.030 to 1140-11.040).

Loan Limits and Terms in Missouri

Missouri's structure is unusual. Instead of a fee per $100, the state caps the total you can be charged on one loan at 75 percent of what you borrowed, counted across the original term and every renewal. On a $500 loan that ceiling is $375 in interest and fees. Lenders price below the ceiling but not by much: the Division of Finance's biennial survey covering October 2021 to September 2022 reported an average rate of 365.07 percent APR, roughly $43 in cost on a 14-day loan of the average size. Renewals are where costs pile up, so the law forces a 5 percent principal reduction at each renewal and stops the cycle at six. No city ordinances change these rules; enforcement rests with the Division of Finance, which examined 167 licensees in 2022 and reported that all of them passed.

What a $300 Loan Costs in Missouri

Missouri caps only the lifetime total (75 percent of principal), so the fee here uses the Division of Finance's reported statewide average rate of 365.07 percent APR from its 2023 report to the General Assembly rather than the legal ceiling. At that rate a 14-day loan of $300 costs about $42: $300 x 3.65 x 14 / 365 = $42.00. Checking the APR from the fee: $42 / $300 = 0.14; 0.14 x 365 / 14 = 3.65, or 365 percent. At the statutory maximum a lender could collect up to $225 over the life of the loan and its renewals.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Missouri

• Every payday lender must be licensed by the Division of Finance under RSMo 408.500, and unlicensed lending is a reportable violation; the Division examines licensees and can issue cease and desist orders with civil penalties of up to $1,000 a day.
• You may cancel a payday loan without any cost by returning the full principal to the lender before the close of its next full business day, and the lender must tell you this in writing in at least ten-point bold type.
• Total interest and fees on any single loan, including all renewals, cannot exceed 75 percent of the original loan amount, so a $300 loan can never cost more than $225 in charges no matter how many times it is renewed.
• A loan may be renewed no more than six times, and at every renewal you must pay down at least 5 percent of the principal, which prevents a loan from rolling indefinitely at the same balance.
• Lenders must post their maximum annual percentage rates in at least fourteen-point bold type and give you a written notice that states the loan terms and your cancellation right before you sign.
• Federal law caps the annual rate at 36 percent, including most fees, for active-duty service members and their dependents under the Military Lending Act, which covers payday loans in every state.
• The Division of Finance accepts complaints by phone, email, mail and an online form, forwards them to the lender for a written response within about 30 days, and reports to the General Assembly every two years on the industry's compliance.

Complaints and licence checks go to the Missouri Division of Finance: 573-751-3242, finance.mo.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Missouri

The Missouri license requirement in RSMo 408.500 applies to anyone making unsecured loans of $500 or less to Missouri residents, whether from a storefront or a website. The Division of Finance publishes its licensee list and accepts complaints against online lenders that hold a Missouri license. The practical problem is lenders that do not: out-of-state internet operations and lenders affiliated with tribal governments sometimes lend into Missouri without a state license and may argue that Missouri's caps do not bind them. Those loans are outside the Division's examination program, so the 75 percent lifetime cap, the six-renewal limit and the cancellation right may not be honored in practice. Before you borrow online, check the lender's name on the Division of Finance licensee search, confirm the written notice discloses the APR and the total cost in dollars, and keep a copy. If an unlicensed lender is collecting from you, file a complaint with the Division and, for out-of-state companies, with the Consumer Financial Protection Bureau as well.

Alternatives If a Payday Loan Is Not the Right Fit

The cheapest short-term credit in Missouri usually comes from a credit union. Federal credit unions can offer payday alternative loans under NCUA rules: $200 to $1,000 for one to six months, or up to $2,000 for up to twelve months, with the rate capped at 28 percent APR and an application fee of no more than $20; no rollovers are allowed. Missouri also licenses consumer installment lenders under RSMo 408.510, whose loans repay in at least four roughly equal installments over at least 120 days. Be careful there: RSMo 408.100 lets lenders and borrowers agree to any rate on unsecured loans, so an installment loan can carry a triple-digit APR, and the longer term can make it cost more than a payday loan in total. Ask your employer about an advance on wages you have already earned, ask the utility or landlord for a payment plan, and call 2-1-1 or your county's community action agency for emergency assistance before you sign for any high-cost loan.

Compare the installment loan and payday alternative loan options before you decide.

Cities We Cover in Missouri

• Springfield, MOLocal cost of living, ordinances and help lines

Frequently Asked Questions

Nearby States

• IowaThe fee cap, a worked example and the regulator to call in Iowa.
• IllinoisThe fee cap, a worked example and the regulator to call in Illinois.
• KentuckyThe fee cap, a worked example and the regulator to call in Kentucky.
• TennesseeThe fee cap, a worked example and the regulator to call in Tennessee.
• ArkansasThe fee cap, a worked example and the regulator to call in Arkansas.
• OklahomaThe fee cap, a worked example and the regulator to call in Oklahoma.
• KansasThe fee cap, a worked example and the regulator to call in Kansas.
• NebraskaThe fee cap, a worked example and the regulator to call in Nebraska.