Barbour signs bill with changes to payday lending

By The Associated Press

JACKSON — Gov. Haley Barbour has signed legislation giving payday lending companies at least three more years to do business in Mississippi, but making changes to their operations.

The bill was signed Thursday and becomes law on Jan. 1.

Some laws come up for review every few years. Opponents of payday lending had lobbied lawmakers to let that industry’s law expire next year.

Most payday lenders now write 14-day loans.

The new law gives consumers up to 30 days to repay loans and caps fees at $20 for every $100 borrowed, up to $250. For loans of $251 to $500, the fee will be $21.95 per $100.

Lawmakers say extending the time to repay loans reduces the annual percentage rate for customers.

***

The bill is House Bill 455.