Mississippi House Bill HB909

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Pawnbrokers, title pledge lenders and check cashers; reduce maximum rate of interest that they may charge for their services.

Impact

The bill amends Sections 75-67-313 and 75-67-413 of the Mississippi Code of 1972, making the lending framework for pawnbrokers and title pledge lenders more uniform in regards to interest rates. The revised regulations would pose a significant impact on consumer financial security, as lower interest rates may lessen the burden on individuals who rely on these services for quick cash. Moreover, by regulating the financial terms imposed on delayed deposit checks, the legislation aims to create greater transparency and accountability amongst entities involved in cash transactions.

Summary

House Bill 909 seeks to amend existing Mississippi laws regarding the interest rates charged by pawnbrokers, title pledge lenders, and check cashers. The bill specifically caps the maximum annual percentage rate (APR) they can charge at 25% on the amounts advanced in transactions that remain unpaid. This legislative move aims to protect consumers from exorbitant fees related to financial services provided by these lenders, ensuring that they deal fairly with individuals seeking short-term financial solutions.

Contention

Despite its intended consumer benefits, there may be points of contention regarding the implementation of these caps. Advocates for the bill argue it provides necessary protection for vulnerable consumers who often turn to high-interest loans during financial emergencies. Conversely, critics may raise concerns that such limits could adversely affect the availability of these services or lead some providers to implement stricter lending criteria, potentially reducing access for those most in need. Additionally, questions might arise about how these changes interact with existing state responses to financial crises during economic downturns.