By TED CARTER
The Mississippi Senate authorized installment-loan legislation Wednesday that supporters say creates options for cash-strapped borrowers but has opponents stressing it expands predatory financing.
The bill, SB2409, won passage on a 38-11 vote.
Supporters of legislation authored by Sen. Rita Potts Parks, chairwoman for the company and Financial Institutions Committee, tout it in an effort to guarantee short-term loans are available following the U.S. customer Financial Protection Bureau enacts sweeping brand brand brand new reforms, possibly as early as this springtime.
Whitney Barkley for the Center for Responsible Lending said her overview of ParksвЂ™ bill shows that it is another real option to trap Mississippians in a period of financial obligation. Comparable bills ‘re going through State homes across the nation, she stated.
вЂњThis could be the nationwide pay day loan industry wanting to produce this installment loan item with pay day loan rates,вЂќ said Barkley, an insurance policy counsel because of the center and previous staff lawyer because of the Mississippi Center for Justice.
вЂњMore people are certain to get caught in a financial obligation trap,вЂќ she stated. вЂњThey are attempting to go shopping this as a safe item.вЂќ