Payday loans; permitted interest. (SB752)

Introduced By

Sen. Mamie Locke (D-Hampton)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Payday loans; permitted interest.  Repeals provisions of the Payday Loan Act that authorize lenders to charge a loan fee or verification fee, thereby limiting permissible charges on payday loans to simple interest at a maximum annual rate of 36 percent. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
11/17/2010Prefiled and ordered printed; offered 01/12/11 11100437D
11/17/2010Referred to Committee on Commerce and Labor
01/17/2011Failed to report (defeated) in Commerce and Labor (4-Y 10-N) (see vote tally)

Comments

Jay S., tracking this bill in Photosynthesis, notes:

locke

Doug Smith writes:

Event the payday lending managers say this is a scam. Time to cap that interest rate at 36%!

Doug Smith writes:

Mississippi is having waging a debate on the sunset of their predatory lending bills. This is what the faith community there is saying:

“Jesus said, 'I come to bring good news to the poor … 572 percent interest is not good news to the poor. They are being entrapped. We are better people than this."
-- Bishop Hope Morgan Ward of the United Methodist Church
http://www.clarionledger.com/article/20110111/NEWS010504/101110339/Payday+lenders+defend+high+rates

Rev. C.J. Rhodes, pastor for Mount Helm Baptist Church in Jackson, testified the rates "are not just unjust, but sinful."
http://www.clarionledger.com/article/20110111/NEWS010504/101110339/Payday+lenders+defend+high+rates

"The religious community is committed to ending this debt trap, which often finds people who are struggling to make ends meet each month in deeper financial straits than when they started.. In a state that has the highest rate of poverty in the nation, we also have one of the highest concentrations of payday lending in the nation."
-- Rev. Carol Spencer, chairwoman of the Mississippi Religious Leadership Conference, deacon at St. Andrews Episcopal Cathedral in Jackson.
http://www.businessweek.com/ap/financialnews/D9KM8U6O0.htm

"It would be my concern that all citizens and especially our legislators continue to address the basic truth that an essential measure of a moral society is the way its weakest, poorest and most vulnerable citizens fare in the life and policies of that society. We need to search for the wisdom and courage to build that kind of society in our state."

Bishop William R. Houck, former bishop of the Catholic Diocese of Jackson (commenting on the committee’s vote)

http://www.clarionledger.com/article/20110112/NEWS010504/101120341/Payday-loan-bill-advances