Mississippi House Bill HB1171

Mississippi 2024 Regular Session

• Introduced: 2/14/24
• Refer: 2/14/24
• Failed: 3/5/24

Caption

Check cashers and MS Credit Availability licensees; authorize to pass credit/debit cards fees to customers.

Impact

The implementation of HB1171 may significantly alter the financial landscape for consumers utilizing check cashing services and credit availability transactions. By allowing businesses to charge these fees, customers may face increased costs when opting to pay via credit or debit cards rather than cash. The bill mandates that businesses must give clear and conspicuous notice of any fees being applied, which is intended to protect consumers from surprise charges. This transparency could help inform customers about the costs associated with their payment choices and encourage them to consider alternative payment options if they want to avoid fees.

Summary

House Bill 1171 seeks to amend the Mississippi Code to allow check cashing businesses and credit availability licensees to pass on third-party processing fees to customers when using debit or credit cards. This legislative change builds upon existing laws regarding fees imposed on check cashers and credit transaction services, aiming to enhance transparency and provide more flexibility for these businesses. Specifically, the bill revises sections 75-67-517 and 75-67-619, explicitly allowing these businesses to disclose and pass such fees directly to customers, as long as appropriate notices are made clear prior to the transaction completion.

Contention

While the bill promotes transparency, it could also be seen as a method for businesses to shift costs to consumers, raising concerns among consumer advocacy groups about potential price hikes. Detractors may argue that passing on these fees could disproportionately affect low-income individuals who rely on check cashing services. There may be fears that this legislation could lead to a lack of competition in the sector, giving businesses the prerogative to impose different fees without sufficient market regulation.

Implementation

Upon enactment, HB1171 will take effect on July 1, 2024. This timeline provides businesses the opportunity to adjust their practices accordingly and ensure they comply with the new regulations concerning fee disclosures. Overall, by enabling these adjustments in policy, the bill aims to modernize the regulations governing check cashing and credit services in Mississippi while also potentially increasing operational costs for consumers.