Missouri

Payday Loans in Missouri

At a Glance
Missouri
  • Nickname: The Show Me State
  • Population: 6.13 million
  • Capital: Jefferson City
  • Website: www.mo.gov

Sitting on the border of the Midwest and the Southern United States, Missouri’s vast grassy plains and stately Ozark mountains are a sight to behold. But behind the state’s natural beauty lies a dark underbelly of poverty. Just over 13% of Missouri residents lived below the poverty level in 2018, and the median household income for Missourians during 2018 ($54,478) was nearly $7,500 less than the national average of $61,937. To make matters worse, 28.3% of all Missouri jobs are considered “low wage,” which means they pay less than what an individual needs to make to stay above the federal poverty level.

Average Credit Card Debt and Median Household Income in Missouri vs. the U.S.
Missouri
The U.S.
$5,601
$6,028
Average Credit Card Debt (Q1 2019)
$54,478
$61,937
Median Household Income (2018)

Payday Loans in Missouri

Payday loans are legal in the state of Missouri. The numbers of payday lenders have been on the decline in recent years. From 2011 to 2019, the state saw a decrease in the number of payday loan licenses issued (from 1,315 in 2011 to 662 in 2019). As of January 2019, there were approximately 617 active payday lender licenses in the state, However, average loan size and annual percentage rates have been steadily increasing over the years. As of January 2019, Missouri residents had taken out nearly 1 million payday loans averaging $306.49 per loan (as compared to only $290.29 in 2011). In addition, Missouri payday loan borrowers were paying, as of January 2019, annual percentage rates of a whopping 526.74% (compared to 430.68% in 2011).

Missouri Payday Loan Statistics (2011-2019)

 

Jan 2011

Jan 2013

Jan 2015

Jan 2017

Jan 2019

 

# Active Licenses

1,275

1,040

934

898

617

# of Loans

2.83 million

2.43 million

2.34 million

1.87 million

998,776

Ave Loan Amount

$290.29

$307.56

$306.12

$309.64

$306.49

Ave # of Renewals

1.7

1.6

1.5

1.6

1.6

Ave APR

430.68%

444.61%

454.62%

451.91%

526.74%

Source: Missouri Division of Finance, Report to General Assembly, February 5, 2019.

 

According to a 2007 report by the Missouri Division of Finance that examined the patterns of 3,700 payday loan borrowers, Missouri payday loan borrowers are typically around 43 years of age and bring in household incomes of just under $25,000. Nearly one-quarter of them consider their vocation to be “labor”, and 12% are on Supplemental Security Income (SSI) or disability.

Consumer Protection in Missouri

How to Report a Lender in Missouri

If a payday or title lender in Missouri has harassed you or isn’t following the rules and regulations, you can report them by filing a complaint with the Missouri Division of Finance. Simply submit a complaint form by email, mail, or fax.

The Missouri Division of Finance information

 

Guides to Payday Loans in Missouri Cities

Check out these payday loan guides for the following cities in Missouri…

Columbia | Independence | Jefferson City | Joplin | Kansas City | Springfield | St. Louis

Works Cited

  1. “Missouri payday lenders shift to installment loans” St. Louis Post-Dispatch. Accessed March 6, 2017. http://www.stltoday.com/news/local/govt-and-politics/missouri-payday-lenders-shift-to-installment-loans/article_ca8d5c45-d05d-59f9-ace9-b67b339ba0c4.html
  2. “Show-Me Predatory Lending” Where Does the Money Go?” University of Missouri. Accessed March 6, 2017. http://extension.missouri.edu/cfe/wcap/Show-MePredatoryLendingReport.pdf
  3. “Missouri State Information” Payday Loan Consumer Information. Accessed March 6, 2017. http://www.paydayloaninfo.org/state-information/33
  4. “Payday and Car Title Lenders Drain $8 Billion in Fees Every Year” Center for Responsible Lending. Accessed February 15, 2017. http://responsiblelending.org/sites/default/files/nodes/files/research-publication/crl_statebystate_fee_drain_may2016_0.pdf
  5. “Car Title Lending: Driving Borrowers to Financial Ruin” The Center for Responsible Lending and The Consumer Federation of America. Accessed March 6, 2017. http://www.consumerfed.org/pdfs/driving_borrowers_rpt.pdf
  6. “Car Title Lending: The State of Lending in America & its Impact on U.S. Households” The Center for Responsible Lending. Accessed June 8, 2018. http://www.responsiblelending.org/state-of-lending/reports/7-Car-Title-Loans.pdf
  7. “Driven to Disaster: Car-Title Lending and Its Impact on Consumers” CFA. Accessed February 15, 2017. http://www.responsiblelending.org/other-consumer-loans/car-title-loans/research-analysis/CRL-Car-Title-Report-FINAL.pdf
  8. “A Look at U.S. Consumer Credit Card Debt” Experian. Accessed December 3, 2019. https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
  9. “Household Income: 2018: American Community Survey Briefs” Guzman, G. (U.S. Census Bureau). Accessed December 3, 2019. https://www.census.gov/library/stories/2019/09/us-median-household-income-up-in-2018-from-2017.html
  10. “Poverty Data: 2018” Center for American Progress. Accessed December 5, 2019. https://talkpoverty.org/state-year-report/virginia-2018-report/
  11. “Income and Poverty in the United States: 2018” Semega, J., Kollar, M., Creamer, J., & Mohanty, A. (U.S. Census Bureau). Accessed December 5, 2019. https://www.census.gov/library/publications/2019/demo/p60-266.html
  12. “Report to General Assembly” Missouri Division of Finance. (February 5, 2019). Accessed December 5, 2019
  13. “Payday Loans in Missouri” Albers, N. (Institute of Public Policy). (2008). Accessed December 5, 2019. https://mospace.umsystem.edu/xmlui/bitstream/handle/10355/2548/PaydayLoansMissouri.pdf?sequence=1&isAllowed=y
  14. “The Payday Loan Industry in Missouri: A Study of the Laws, the Lenders, the Borrowers and the Legislation” Better Business Bureau. Accessed December 5, 2019. https://www.stlouisfed.org/~/media/files/pdfs/community%20development/paydayloanreport09color.pdf