The Mississippi Senate authorized installment-loan legislation Wednesday that supporters say creates options for cash-strapped borrowers but has opponents stressing it expands lending that is predatory.
The bill, SB2409, won passage for a 38-11 vote.
Supporters of legislation authored by Sen. Rita Potts Parks, chairwoman associated with the company and Financial Institutions Committee, tout it in order to make sure short-term loans are available following the U.S. Customer Financial Protection Bureau enacts sweeping brand new reforms, possibly as early as this springtime.
Whitney Barkley for the Center for Responsible Lending stated her post on Parks’ bill shows that it is another method to trap Mississippians in a period of debt. Comparable bills ‘re going through State homes across the national nation, she stated.
“This may be the nationwide cash advance industry wanting to produce this installment loan item with cash advance costs, ” said Barkley, an insurance plan counsel using the center and previous staff lawyer utilizing the Mississippi Center for Justice.