Fees will not increase on small loans
Published: April 4,2013
JACKSON — Mississippi lawmakers are rejecting a plan to raise fees on loans between $500 and $4,000.
On a voice vote, House members rejected Senate Bill 2571, with opponents saying it was immoral to raise interest rates on hard-up borrowers.
House members technically sent the bill back for more negotiations, but senators didn’t act, killing the bill.
Proponents said loan companies could lose profits from selling credit life insurance and other add-ons if the new federal Consumer Financial Protection Bureau restricts sales of such products. They argued loan companies need to replace that income, and said even those fees would be less expensive than interest rates charged by payday lenders.
The bill would have allowed fees equal to annual interest rates of up to 99 percent on loans, $500 to $4,000.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- A BIG CHANGE: New mortgage rules seen bringing increase in pricey mobile home loans
- Analyst: KiOR Columbus plant may end up sold as scrap
- Warden who lives hundreds of miles from jail resigns
- Jail kitchen supervisor pleads guilty to stealing food
- (UPDATE) Gov. Bryant: $1.2 billion aluminum plant is a very exciting proposition for the state of Mississippi
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- WILLOUGHBY: Bernie Reed cites hard work as key to success of Reed’s Metals
- DAVID DALLAS: Savor this Thanksgiving and be grateful
- Hunting-weapons legislation passes House