Mississippi House Bill 455 has moved onto the Senate. The bill will extend the minimum period that a borrower can pay back a loan. Instead of making loans that land on a borrower’s pay date, the new law would require a minimum of 21 days ($20 per $100) for loans less than $201 and 28 days for $201 ($21.95 per $100) and higher.
This will lower the APRs drop from around 523% to 347 % (for $200 or less) and 286% (for $201 and up).
The industry is in support of a new bill b/c if nothing passes, the current payday law will sunset in 2012 and rates will cap at 36%.
