Mississippi borrowers could soon pay more for some kinds of loans, if lawmakers approve a bill to allow higher interest rates.
House Bill 1396 would allow loan companies to charge 99 percent interest for loans up to $1,500; 74.83 percent interest for loans of $1,600; and 56.73 percent interest on loans of $4,000. The
current cap is 36 percent.
Proponents say the bill will give consumers a better option than the much higher interest rates of payday lenders because new rates would entice consumer lenders to loan amounts under $1,000.
They also say lenders don't have to increase interest rates.
Opponents call the move state-sanctioned predatory lending because interest rates on loans less than $1,500 would nearly triple and interest on most loans up to $4,000 would double.