Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1140 - Division of Finance
Chapter 3 - Retail Credit Sales
Section 20 CSR 1140-3.040 - Extension Fees

Universal Citation: 20 MO Code of State Regs 1140-3.040

Current through Register Vol. 49, No. 6, March 15, 2024

PURPOSE: Extension fees are believed by the director of finance to be a fair and equitable approach to certain problems which can occur during the term of precomputed retail credit sales contracts. This rule is designed to provide a simple extension fee formula which is equitable for both the financial institutions and the debtor.

(1) Extensions on precomputed contracts made pursuant to the Retail Credit Sales Act shall be calculated according to the following formula:

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Extension fee = UC times NUMBER OF FULL REMAINING INSTALLMENTS. Example: Consider a twenty-four (24)-month contract of $1,925.25 with finance charges of $474.75, monthly payments of $100 and APR of 22.13%.

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If an extension is taken with twenty-two (22) installments remaining, the extension fee would be 22 times 1.5825 or $34.81. Considerations within the act necessitate the following limitations on extensions:

(A) No extension fee shall be collected more than one (1) month prior to the due date of the earliest installment being deferred;

(B) No extension shall be collected for any partial payment, however, two dollars ($2) or less shall not be considered a partial payment;

(C) A minimum extension fee of one dollar ($1) will be allowed;

(D) Any principal payment collected on the same day as an extension shall be applied before calculating the extension fee; and

(E) In the event of prepayment in full of the note or contract, the extensions shall be counted as months and the rule of seventy eight's (78's) factor, based on this total, applied to all of the finance charges contracted for plus the extension fees collected.

*Original authority: 364.060, RSMo 1963, amended 1993, 1995.

Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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