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SECOND REGULAR SESSION
HOUSE BILL NO. 3187
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE RUSH.
6325H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 408, RSMo, by adding thereto one new section relating to consumer loans,
with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 408, RSMo, is amended by adding thereto one new section, to be
2 known as section 408.900, to read as follows:
408.900. 1. This section shall be known and may be cited as the "Cr edit Fairness
2 and Financial Opportunity Act".
3 2. For purposes of this section, the following terms mean:
4 (1) "Ability-to-pay factors", information demonstrating a consumer's capacity
5 to repay including, but not limited to:
6 (a) V erified income;
7 (b) Employment history;
8 (c) Debt-to-income ratio;
9 (d) Rental, utility , insurance, and other payment history;
10 (e) Explanation of negative cr edit events; and
11 (f) Extenuating cir cumstances such as medical hardship, temporary
1 2 unemployment, divor ce, or natural disaster;
13 (2) "Consumer loan", any loan primarily used for personal, family , or household
14 use including, but not limited to:
15 (a) Automobile loan;
16 (b) Credi t card loan or loans;
17 (c) Installment loans;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (d) Retail financing;
19 (e) Lines of cred it; and
20 (f) Financial pro ducts offer ed by the banks, cr edit unions, and lenders licensed
21 in this state;
22 (3) "Cre dit scor e", any numerical express ion used by lenders to pr edict
23 cr editworthiness;
24 (4) "Dir ector", or "Dir ector of Finance", as defined under section 361.010;
25 (5) "Division", the division of finance of the department of commer ce and
26 insurance;
27 (6) "Lender", as defined in section 408.015. The term "lender" includes
28 consumer installment lenders defined under section 408.510 and any person engaged in
29 the business of making consumer cr edit loans under section 367.100.
30 3. No lender operating in this state shall deny a consumer loan application based
31 solely on a numerical cred it scor e without first conducting an individualized ability-to-
32 pay analysis under subsection 4 of this section.
33 4. Before denying a consumer loan, a lender shall document:
34 (1) An applicant's verified monthly income;
35 (2) An applicant's debt-to income ratio;
36 (3) An applicant's payment history for rec urring obligations;
37 (4) Any documented extenuating circu mstances; and
38 (5) Whether alternate terms, such as longer rep ayment, lower loan amount, or
39 posting of security , would r easonably allow appr oval for a loan.
40 5. A lender is pro hibited fr om engaging in the following practices:
41 (1) Using minimum credi t scor e cutoffs as the sole basis for denying a consumer
42 loan;
43 (2) Issuing automated denials for a consumer loan without any human review;
44 (3) Penalizing customers for medical debts under the amount of five hundr ed
45 dollars;
46 (4) Penalizing customers for isolated emergency-related delinquencies; or
47 (5) Failing to consider ability-to-pay factors pr ovided by a customer .
48 6. An applicant who is denied a consumer loan under this section shall have the
49 right to the following action or actions against a lender:
50 (1) Requesting a written explanation that identifies the factors used in the
51 decision to deny a consumer loan;
52 (2) Submitting additional information demonstrating his or her ability to rep ay
53 the consumer loan;
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54 (3) Requesting a reco nsideration of the decision to deny the consumer loan based
55 upon additional or supplemental documentation given to the lender; and
56 (4) Filing a complaint with the division for alleged violation or violations
57 committed by the lender .
58 7. The division is her eby vested with the necessary powers and duties prescrib ed
59 by law to enforce the pr ovisions of this section including, but not limited to, taking
60 appr opriate action against a lender for violation or violations committed under this
61 section.
62 8. Any violation or violations committed by a lender under this section may
63 r esult in the dir ector assessing a civil penalty in an amount not to exceed one thousand
64 dollars per violation, in addition to the costs and expenses for the investigation and
65 pr osecution of the matter , including re asonable attorney's fees. In lieu of a civil penalty ,
66 the dir ector may assess administrative fines as determined by rule.
67 9. Subject to the applicable federal and state laws governing lenders, the dir ector
68 may take disciplinary action such as a mandatory correct ive action or suspending or
69 r evoking a lender's authority for r epeated or willful violations committed under this
70 section.
71 10. The dir ector may pr omulgate all necessary rules and reg ulations for the
72 administration of this section. Any rule or portion of a rule, as that term is defined in
73 section 536.010, that is crea ted under the authority delegated in this section shall
74 become effective only if it complies with and is subject to all of the provi sions of chapter
75 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable
76 and if any of the powers vested with the general assembly pursuant to chapter 536 to
77 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
78 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or
79 adopted after August 28, 2026, shall be invalid and void.
80 1 1. This section shall become effective on January 1, 2027.
✔
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