Approval of Credit Limits

PURPOSE: This rule provides regulatory procedures for the Class B licensees to follow regarding the approval of credit limits. (1) A credit limit, and any temporary or permanent increases thereto, shall be approved by an occupational licensee other than the licensee who processed and verified the credit application information. Each Class B licensee shall designate in its internal control system the job titles authorized to approve credit limits. (2) The approval of credit shall be recorded in the person’s credit file (either manually or electronically) and shall include the: (A) Amount of credit for which the person qualifies as determined by the results of the credit check; (B) Approved credit limit amount, which shall not exceed the amount requested by the person; (C) Information used to support the credit limit and any changes thereto, including the source of the information; and (D) Signature of the occupational licensee approving the credit limit, together with the date and time of the approval, which shall be recorded before any actual extension of credit is tendered. (3) Prior to approving a temporary or permanent credit limit increase, an employee of the credit department or other employee, as designated in the Class B licensee’s internal control system, shall— (A) Obtain a written request from the person which includes: 1. The date and time of the person’s request; 2. The amount of credit limit increase requested by the person and if the increase requested is temporary or permanent; and 3. The signature of the person; (B) Re-verify the information as required by the Class B licensee’s internal control system for increasing credit limits; (C) Include this information and documentation in the person’s credit file; and (D) Comply with the requirements of sections (1) and (2) of this rule. AUTHORITY: section 313.004, RSMo 2000, and sections 313.800, 313.805, 313.812, 313.817, and 313.830, RSMo Supp. 2014.* Emergency rule filed July 31, 2014, effective Aug. 28, 2014, expired Feb. 26, 2015. Original rule filed July 31, 2014, effective Feb. 28, 2015. *Original authority: 313.004, RSMo 1993, amended 1994; 313.800, RSMo 1991, amended 1992, 1993, 1994, 2005, 2014; 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; and 313.830, RSMo 1991, amended 1992, 1993, 2000, 2010, 2014.