Lawmakers approve payday loan rate reductions - MSNewsNow.com - Jackson, MS

Lawmakers approve payday loan rate reductions

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JACKSON, MS (WLBT) - State lawmakers approve two bills that allow payday lenders to continue operating and reduce rates for consumers.

The senate version would give consumers up to 21 days to repay loans of up to $300 and a minimum of 28 days to repay loans between $301 to $500. The version passed in the house gives borrowers 21 days to payback loans up to $200 dollars and 28 days for loans of $201 to $500.

The two chambers must agree on a single version before a bill is sent to the governor. Currently a check cashing business can write a contract from one to 30 days.

"We do applaud the efforts of the senators who were trying to make those improvements. We think those things are very necessary in order to make this industry better for the people in the state of Mississippi," said Paheadra Robinson with MS Center For Justice.

"We've had to face the repealer three times and unfortunately that brings it back up, and then you have the special interest groups who come in and we have to give our side of the story too," added spokesman for Borrow Smart Mississippi, Dan Robinson.

Senate Banking Chairman Gary Jackson says requiring a 28-day minimum on larger loans would effectively cut the annual percentage rate in half.

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