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 lending that is predatory.
The bill, SB2409, won passage on a 38-11 vote.
Supporters of legislation authored by Sen. Rita Potts Parks, chairwoman associated with the company and Financial Institutions Committee, tout it in an effort to guarantee loans that are short-term available following the U.S. customer Financial Protection Bureau enacts sweeping brand brand brand new reforms, possibly as soon as this springtime.
Whitney Barkley associated with Center for Responsible Lending stated her report on ParksвЂ™ bill shows it to be another real method to trap Mississippians in a period of financial obligation. Comparable bills are getting through State homes across the nation, she stated.
вЂњThis could be the payday that is national industry attempting to produce this installment loan item with pay day loan costs,вЂќ said Barkley, an insurance plan counsel using the center and previous staff lawyer utilizing the Mississippi Center for Justice.
вЂњMore people can get caught in a financial obligation trap,вЂќ she stated. вЂњThey are attempting to go shopping this as a safe item.вЂќ