Application and Verification Procedures for Granting Credit

PURPOSE: This rule provides regulatory procedures for the Class B licensees to follow regarding standards for establishing lines of credit. (1) A person who wants to obtain credit from a Class B licensee shall file a credit application with the Class B licensee which contains, at a minimum, the following information: (A) The person’s name; (B) The address of the person’s residence; (C) The person’s telephone number; (D) Bank account information including: 1. The name of the person’s bank; and 2. The account number of the person’s banking account upon which the person is individually authorized to draw and upon which all credit instruments will be drawn; (E) The credit limit requested by the person; and (F) The person’s signature indicating acceptance of the terms of the credit agreement and attesting to the accuracy of the information provided. (For applications received electronically, the signature may be obtained at a later time prior to the final verification of the credit application.) (2) The Class B licensee shall not approve a credit limit above the amount requested by the person unless the person requests the increase in writing. (3) Upon receipt of an application for credit, a confidential credit file for that person containing the information required under section (1) shall be prepared by a cage or credit employee of the Class B licensee either manually or electronically prior to the Class B licensee’s approval of a person’s credit limit. The information used to determine that an applicant is a “qualified person” pursuant to section 313.817.8, RSMo, must be contained in the person’s credit file. A cage or credit employee who is responsible for receiving, processing, or verifying the information in credit applications shall not have authority to approve any credit limits or credit limit increases. (4) Prior to a Class B licensee’s approval of a person’s credit limit, an employee of the credit department or other employee as designated in the Class B licensee’s internal control system shall— (A) Verify the person’s identity by— 1. Obtaining the person’s valid, nonexpired government-issued photo identification (such as a driver’s license, state ID card, or passport); and 2. Confirming the person’s identity by comparing the photo, physical description, and identifying information on the photo identification to the person requesting the credit; (B) Verify the person’s address (address must match at least one (1) of the addresses on the reports used to determine creditworthiness); (C) Perform a credit check and apply usual standards to determine the dollar amount of credit for which the person qualifies; (D) Verify the person’s banking account information which includes, but is not limited to, the following: 1. Account number; and 2. Name and title of the person or webbased service supplying the information; (E) Verify that the person’s name is not on the List of Disassociated Persons or the Missouri Gaming Commission (MGC) Excluded Persons List; (F) Verify the application is signed by the person; and (G) Sign the verifications. The date and time of the signature of the verifier shall be recorded either electronically or manually contemporaneously with the verification. (5) A person’s credit worthiness shall be based on the amount of funds in the person’s demand deposit account or accounts including any checking account and savings account. (6) If the person’s credit worthiness is ten thousand dollars ($10,000) or more, the Class B licensee may accept a credit instrument of more than ten thousand dollars ($10,000) only if the qualified person’s creditworthiness is equal to or in excess of the amount of the credit instrument. If the person’s credit worthiness is less than ten thousand dollars ($10,000), the Class B licensee may only accept credit instruments that are equal to or less than half the amount of the person’s creditworthiness. AUTHORITY: sections 313.004, 313.800, 313.805, 313.812, 313.817, 313.830, and 313.930, RSMo 2016.* Emergency rule filed July 31, 2014, effective Aug. 28, 2014, expired Feb. 26, 2015. Original rule filed July 31, 2014, effective Feb. 28, 2015. Emergency amendment filed July 28, 2016, effective Aug. 28, 2016, expired Feb. 23, 2017. Amended: Filed July 28, 2016, effective Feb. 28, 2017. Amended: Filed April 25, 2019, effective Dec. 30, 2019. *Original authority: 313.004, RSMo 1993, amended 1994, 2014; 313.800, RSMo 1991, amended 1992, 1993, 1994, 2005, 2014, 2016; 313.805, RSMo 1991, amended 1992, 1993, 1994, 2000, 2008, 2010; 313.812, RSMo 1991, amended 1992, 1993, 1994, 2000, 2014; 313.817, RSMo 1991, amended 1992, 1993, 2000, 2008, 2014, 2016; 313.830, RSMo 1991, amended 1992, 1993, 2000, 2010, 2014; and 313.930, RSMo 2016.