Video: Bill Extends Check-Cashing Lenders

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By Emily Wagster Pettus/The Associated Press

JACKSON — The Mississippi House has voted to let payday lending businesses keep operating in the state beyond 2015.

The bill passed on an 89-21 vote Thursday. It goes to the Senate for more debate.

At a payday lending business, a consumer can get a short-term loan by writing a check that covers the amount being borrowed, plus fees. State law gives consumers 30 days to repay loans, and it caps fees at $20 for every $100 borrowed.

Critics say the companies charge high fees that can trap poor people into a series of debts that are difficult to repay.

Supporters say the businesses provide easy access to cash for people who might not be able to get loans from traditional banks.

Categories: Local News

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