Borrowing in Missouri: What State Law Allows

How payday loans are limited in Missouri

Payday lenders in Missouri are licensed by the Division of Finance to make unsecured loans of $500 or less. The law doesn't cap the interest rate itself. Instead, it caps the total: everything you pay in interest and fees over the loan and all its renewals can't exceed 75% of the amount you first borrowed.

The lender must consider whether you can reasonably repay, charge only simple interest, and post its maximum APRs in the lobby. A lender also can't pay off your loan with the proceeds of another loan of its own. A 2026 law (House Bill 2423) revised the licensing section effective August 28, 2026; the consumer limits above are unchanged.

Title loans have size limits but no rate cap

Licensed title lenders can lend up to $5,000 against a car or other titled property you own outright. The loan must run at least 30 days. You can renew it on written request by paying the interest due, and from the third renewal on, each renewal must reduce the principal by 10% until it's paid off.

• Missouri sets no interest cap for title loans. The lender must post the maximum rates it charges and state the monthly rate in your agreement.
• The lender must consider your ability to repay when setting the loan's size and length.
• The lender must give a bold warning that you could lose the vehicle, and you sign to acknowledge it.
• Before repossessing, the lender has to follow Missouri's default and right-to-cure rules.

Installment loans and other credit

For most other consumer loans, Missouri lets licensed lenders charge rates agreed to by the parties. That makes your own comparison the main protection. Get two or three offers, line up the APRs and total costs, and use the loan payment calculator to see the monthly payment. If your credit is in the fair range, a personal loan may cost far less than a payday or title loan.

Five or ten years to sue

Missouri has two contract deadlines. Actions on a writing for the payment of money get ten years (RSMo 516.110). Other contract actions, express or implied, get five years (RSMo 516.120).

Which one applies to credit card debt depends on whether the court finds a signed written promise to pay. A card agreement you never signed usually points to the five-year period, but a creditor with signed paperwork may argue for ten. If you're sued on an old debt, raise the time limit and talk to a lawyer or legal aid. Our guide on old debt and statutes of limitations explains what can restart the clock.

Garnishment protects heads of family

After a court judgment, a creditor can garnish the lowest of three amounts from your weekly take-home pay: 25%, the amount above 30 times the federal minimum wage, or, if you're a Missouri resident and head of family, 10%. Support orders and tax debts follow different rules.

The key step is the judgment. A payday or title lender can't take money from your paycheck just because you missed a payment; it has to sue you and win first. If you get court papers, respond by the deadline, even if you think you owe the money, so you can raise the time limit and any errors in the amount.

Where to check a lender and complain

1. 1 Search the license on the Missouri Division of Finance site. Payday, title, small loan and consumer installment lenders are listed separately.
2. 2 Read the posted notice and APR. Payday and title lenders must display their maximum rates.
3. 3 File a complaint with the Division of Finance online. For collector problems, see debt collectors and your rights.

Common questions