At least three more years of payday cash advances in Mississippi, officially

The Associated Press states that Mississippi Gov. Haley Barbour has signed into law a bill that saves payday lending in the state for at least three more years. The new law may also change certain regulations by which pay day loan corporations must operate. The brand new Mississippi cash advance law will go into impact Jan. 1, 2012.

Mississippi payday lending continuing strong

The extension of payday lending was signed by Gov. Haley Barbour. It would have expired at the beginning of 2012 if this wasn't signed. There would have been a 36 percent APR requirement. This would have brought on the pay day loan outlets to shut down totally. Approximately 3,000 Mississippi careers would have been lost as a result of payday loan business closures.

Only through a thorough review of the effects that expulsion of payday lenders would have had on Mississippi were regulators able to decide upon the bill to send to Barbour. While some origination fees have been reduced, payday advances will remain a choice for consumers

“This time, it was the will of the Legislature that the consumers get reduced fees,” said Sen. Walter Michel (R-Jackson). “The bill that was passed will enable about 3,000 jobs to remain intact.”

What a Mississippi payday advance will cost customers

With the 14-day term, payday loan customers were used to paying $21.95 for every $100 that was borrowed. Under the brand new legislation, fees are capped at $20 per $100 borrowed for loans up to $250. The $21.95 fee is the same for amounts that are between $251 and $500. There has been an increase in short term to 30 days though. APR is something payday advances cannot logically be measured in. Nevertheless, dropping the APR in half like this makes regulators happy.

Just to keep abuse in check, there may also be a hotline added on top of the rate changes. This way, customers can get a hold of the state attorney general effortlessly for Mississippi pay day loan law.

Showing every little thing off

Dan Robinson of the Financial Services Centers of Mississippi does not understand why critics imply that pay day loans are so deceptive.

“There’s no fine print. No hidden charges. No documentation fees," he said. "It’s a very transparent transaction. We don’t collect our money until people pay the check.”

Articles cited

Bloomberg

bloomberg.com/news/2011-02-25/miss-gov-signs-bill-with-payday-lending-changes.html

Lawmakers know Mississippi payday loans are legitimate

youtube.com/watch?v=dKTIJ5Xmb8w