Advocacy Group Warns Against Proposed Bill

February 15, 2016

FOR IMMEDIATE RELEASE

CONTACT: Beth Orlansky, Advocacy Director

Mississippi Center for Justice

borlansky@mscenterforjustice.org

 

(O) 769-230-2838

 

Advocacy Group Warns Against Proposed Bill

 

(Jackson, Miss.) February 15, 2016 - A proposed bill in the Mississippi legislature will ensure that many Mississippians will continue to be caught in the debt trap that is payday lending. 

 

House Bill 1141 and Senate Bill 2409 create a predatory structure that traps consumers in triple interest rate loans.

 

Under the proposed law, monthly payments would more nearly triple from existing law and impose crippling fees on borrowers.

 

“HB 1141 and SB 2409 are very dangerous to someone struggling with debt issues, says Charles Lee, consumer protection director of the Mississippi Center for Justice. “These loans have exorbitantly high interest rates, hidden fees, and high late fees which can drive the borrower further into debt.”

 

The Mississippi Center for Justice has partnered with businesses, banks and credit unions to provide an alternative to payday lending for employees called the New Roots Credit Partnership. The program provides affordable alternative loans, along with financial literacy education, to help those who need financial assistance. 

 

“We want people to understand that they do have options. Many people turn to payday lenders because they are simply not aware of the alternatives. However, paying triple digit interest rates will not solve anyone’s financial crises,” cautioned Lee.

 

###