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.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.