JEFFERSON CITY, Mo. — Credit unions, along with banks and other lenders, would be exempt from a law in this state that governs advertising and merchandising under a piece of legislation proposed in the state legislature.
According to local media, the bill would exempt banks, credit unions and other lenders from civil lawsuits or action by the attorney general under the Missouri Merchandising Practices Act. The financial institutions say the exemption is needed to address a recent increase in lawsuits against them.
But consumer groups in the state have testified that the legislation would mean financial institutions would have little reason to resolve consumer complaints, and leave consumers with little recourse if a home were unlawfully foreclosed on or car improperly repossessed.
The law prohibits fraud, deceptive advertising and omissions of fact in selling any merchandise and lays out a civil course of action for individuals when they are financially harmed. It also authorizes the state attorney general to take action against financial institutions if a state regulator refers a complaint to the office.
The bill, sponsored by Rep. Tony Dugger (R-Hartville) creates a specific exemption for banks, credit unions and other financial institutions from both private civil and class actions and legal enforcement by the attorney general.
The Missouri CU Association has indicated support for the legislation.