Home » NEWS » Banking & Finance » Fees will not increase on small loans

Fees will not increase on small loans

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.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply