Published by admin on 02 Mar 2009
Lenders in Jeopardy
From Financial Service Centers of Mississippi (FSCM)
Below you will find information on two bills that could effectively put all check advance companies out of business as we know it. Click on the links below to monitor the bills.
Protecting Consumers from Unreasonable Credit Rates Act 2009
On February 26, 2009, Senator Richard Durbin (D-IL) introduced The “Protecting Consumers from Unreasonable Credit Rates Act. S.B. 500″ The bill sets a ceiling of 36% APR on consumer credit and establishes a new Federal annualized fee and interest rate calculation- the FAIR. The bill requires that all fees and finance charges be included in the new calculation and would require all lending to conform to the limit. The bill would not preempt more restrictive state laws. The bill does allow lenders to exceed the 36% APR cap for one-time application fees that cover the costs of setting up a new customer account and for processing costs such as late charges and insufficient funds fees.
Durbin Senate Bill: http://www.govtrack.us/congress/bill.xpd?bill=s111-500
The Payday Loan Reform Act of 2009
The Payday Loan Reform Act of 2009, H.B. 1214, was introduced on February 26, 2009 by Representative Luis Gutierrez (D‐IL). The bill focuses on the two major concerns with regard to payday loans: the fees charged and the “cycle of debt.” Among other things, the bill places a national cap on payday loan fees at a total of 15 cents for every $1.00 borrowed; bans rollovers and requires a repayment plan. Under the bill, payday lenders would be banned from rolling over loans and would be required to give consumers who could not repay their loan when due the option of entering into a repayment plan.
Gutierrez House Bill: http://www.govtrack.us/congress/bill.xpd?bill=h111-1214
The FCSM encourage you to contact your Congressman and Senator and remind them that Mississippi legislators worked hard to pass a law that tightly regulates our industry (check advance) yet still allows us to serve our customers. We do not wish for Washington to pass laws that supersede the wishes of our state legislature. Let them know that your job, along with 3000 others in Mississippi, would be eliminated by this law.
Mississippi Legislators
Senator Roger Wicker link: http://wicker.senate.gov/public/index.cfm?FuseAction=Contact.OfficeLocations
Senator Thad Cochran link: http://cochran.senate.gov/contact.htm
Congressman Travis Childers: https://forms.house.gov/childers/webforms/contact.htm
Congressman Bennie Thompson: http://benniethompson.house.gov/contact/index.shtml
Congressman Gregg Harper: http://harper.house.gov/staff/
Congressman Gene Taylor: http://www.taylor.house.gov/
Please let the FSCM association know if you contact your Congressman or Senator so that we (FSCM) can make a record of it. E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it . We will be updating you as things progress. FSCM
