Economic Justice – Predatory Lending

Predatory Lending Reform

Predatory loan products such as car title or payday loans offer small-dollar loans to those looking to make ends meet. However, they come at a very high cost. In Mississippi, fees on these loans can equal an interest rate that tops 500 percent.


Mississippi has the highest concentration of payday lenders per capita in the nation, with about 1000 locations mostly concentrated in low-income areas or in communities of color. They offer quick money without a credit check. Borrowers often cannot pay the full amount of the loan back when comes due, leading them to take out a second loan with additional fees, creating a cycle of debt that is hard to break. Nearly 60 percent of payday loans in Mississippi are taken out by women—most are single heads of households looking to make ends meet for them and their children. These loans become another monthly bill for families whose budgets are already vulnerable.


While Mississippi Center for Justice understands the need for small-dollar loans, we oppose a business model that institutes these high interest rates in the nation’s poorest state. The Center is seeking solutions that break the cycle of debt for hardworking Mississippians who become entangled in when borrowing from these lenders.


New Roots Credit Partnership

The New Roots Credit Partnership brings employers, community leaders, and financial institutions together to engage Mississippians who have been shut out of the economic mainstream for generations. The program combines public education, grassroots outreach, and workforce development with responsible and fair lending products. Taken together, the partnership provides real alternatives to predatory lending. Our goal is to increase the number of Mississippians accessing fair credit, bank accounts, and saving for their futures. Financial institutions partner with employers to offer money management skills, access to small loan products, and an opportunity to develop a banking relationship to their employees.


See our New Roots Case Statement here. If you would like more information about the New Roots Credit Partnership please contact Yumekia Jones at 662-887-6570 x 301.