Small Mississippi lenders aided by bill rewriting state law

JACKSON, Miss. (AP) – Mississippi’s rules governing small loans could be reconfigured ahead of expected federal changes under bills moving forward in the Legislature.

Senators voted 38-11 Wednesday to approve Senate Bill 2409, which would change rules for payday and title loan lenders. The measure moves to the House for more work.

The federal Consumer Financial Protection Board is expected to announce new rules that would bar payday lenders and title lenders from continuing to operate as they currently do.

Supporters say the bill lowers interest rates compared to those used now by payday lenders and title lenders. Opponents, though, say they believe the rates are still too high, especially because the bill raises lending limits, putting payday lenders more in competition with small loan companies that charge lower interest rates.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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