By The Associated Press
JACKSON – Mississippi lawmakers never may have to debate payday loan interest rates again.
The state Senate gave final approval Friday to a bill that deletes the requirement that lawmakers periodically renew authorization for the loans. The bill, which passed 31-13, goes to Gov. Phil Bryant for his consideration.
At a payday lender, a consumer can get a short-term loan by writing a check that covers the amount borrowed, plus fees. State law gives consumers 30 days to repay loans, capping fees at $20 for every $100 borrowed.
Many consumer advocates attack payday loans for their high interest rates, saying they trap borrowers in a cycle of debt. Supporters of the bill say that no matter how distasteful, they’re one of the few options for people to borrow small amounts of money.