City of Wentzville, MO
St. Charles County
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Table of Contents
Table of Contents

Section 645.010 Authority.

[R.O. 2006 §665.010; Ord. No. 1598 §§1 — 3, 1-12-2000]
A. 
Missouri Cities of the Fourth Class, Wentzville being such, have the authority pursuant to Section 79.450, RSMo., to provide for reasonable regulations of businesses within the City limits in order to maintain the good government and welfare of the City and its trade and commerce.
B. 
The City recognizes the need for businesses to make loans as part of trade and commerce and that the City is also sensitive to possible abuses and usurious practices that may occur without reasonable regulation. "Usury" has been traditionally defined as an unconscionable and exorbitant rate of amount of interest charged for loans.
C. 
Consumer protection concerns must be balanced with the reasonable cost related to lending in order to avoid unreasonable interest rates and charges extracted by some pay-day loan, title loan or similar lending operations.

Section 645.020 Definitions.

[R.O. 2006 §665.020; Ord. No. 1598 §4, 1-12-2000]
As herein used, the phrase "short term loan establishment" shall mean any business which loans money on a short-term basis to members of the general public as an element of its operation, including businesses offering title loans, payday loans, signature loans and small loans under Chapter 367 or Section 408.500, RSMo., and other similar businesses. The phrase shall not include a bank, savings and loan association or credit union which is licensed by the appropriate State or Federal agency or a retail credit financing institution which is licensed under Chapters 364 or 365, RSMo., or pawnbrokers governed by Chapter 367, RSMo., or retail merchants governed by Chapter 400.2, RSMo.

Section 645.030 Number of Licenses Limited.

[R.O. 2006 §665.030; Ord. No. 1598 §§5 — 6, 1-12-2000]
No license for operating the business of a short-term loan establishment shall be issued when the issuance thereof would increase the number of such licenses outstanding and in force at that time to more than one (1) for each five thousand (5,000) inhabitants residing within the City according to the last decennial census of the United States, provided that all persons conducting or operating the business of short-term loan establishment within the City of Wentzville on the effective date of this Section may be issued a license if they meet all other requirements for licensure. The renewal of an unexpired existing license shall have priority over the issuance of a new license.

Section 645.040 Display of License.

[R.O. 2006 §665.040; Ord. No. 1598 §7, 1-12-2000]
All short-term loan establishments shall display, in plain view to all patrons entering upon the premises, all licenses and certificates required by this Chapter and by State law. All short-term loan establishments shall further display in plain and ordinary view to all patrons entering upon the premises a chart memorializing the interest rates and fees charged by that particular establishment. Such chart shall be promptly updated whenever said interest rates and fees change.

Section 645.050 Contract — Receipt.

[R.O. 2006 §665.050; Ord. No. 1598 §8, 1-12-2000]
A. 
At the time the loan is made, there shall be delivered to the borrower, or if there are more than one (1) borrower, to one (1) of them, a written statement or copy of the loan contract showing in clear and distinct terms:
1. 
The name and address of the lender and of one (1) of the borrowers;
2. 
The date of the loan contract;
3. 
The schedule of installments or a description thereof;
4. 
The type of instrument, if any, securing the loan;
5. 
The principal amount to the loan excluding interest;
6. 
The rate of amount of interest as the contract may provide;
7. 
That the borrower may prepay the loan in whole or in part at any time, and may also prepay in case interest has been added to the principal of the loan; and
8. 
That the interest is subject to the refund requirements of Section 408.170, RSMo., if the loan is prepaid in full.
B. 
A receipt shall be given for the amount of each payment made in currency. Any note paid in full or a copy thereof shall be so marked "PAID" and returned, and any security interest which no longer secures a loan shall be restored, canceled or released.

Section 645.060 Charges.

[R.O. 2006 §665.060; Ord. No. 1598 §9, 1-12-2000]
A. 
No further or other charge of amount whatsoever shall be directly or indirectly charged, contracted for or received for interest, service charges or other fees as an incident to any such extension of credit except as provided and regulated by Sections 367.100 to 367.200, RSMo., except that:
1. 
On loan for thirty (30) days or longer which are other than "open-end credit" as such term is defined in the Federal Consumer Credit Protection Act and regulations thereunder, a fee not to exceed five percent (5%) of the principal amount loaned not to exceed fifty dollars ($50.00) may be charged by the lender. However, no such fee shall be permitted on any extension, refinance, restructure or renewal of any such loan unless an investigation is made on the application to extend, refinance, restructure or renew the loan.
2. 
This Section shall not apply to those businesses operating exclusively within the Small Loan industry as provided for under Section 408.500, RSMo., and the regulations thereunder.

Section 645.070 Car-Title Loan Business.

[R.O. 2006 §665.070; Ord. No. 1598 §§10 — 11, 1-12-2000]
A. 
Car-title loan businesses shall be limited to one and one-half percent (1.5%) per month interest, and no additional fees shall be assessed against the borrower except that title lenders may charge, contract for and receive a reasonable fee which shall not be deemed interest to defray the ordinary cost of operations.
B. 
Car-title loan borrowers shall be given a grace period of at least thirty (30) days from the date of any failure to pay any installment when due before the vehicle is repossessed by the title loan company. A car so repossessed shall not be displayed for resale on the premises of the short-term loan establishment.

Section 645.080 Pay-Day Loan Business.

[R.O. 2006 §665.080; Ord. No. 1598 §12, 1-12-2000]
Pay-day loan businesses and other small loan establishments are not permitted to criminally prosecute borrowers, and cannot seize or threaten to seize borrowers' assets should there be a default on repayment.