News & Resources

Mississippi city council reverses anti-short term lending resolution

Jan 11, 2011 Todd Milner

The city council in one Mississippi community recently reversed a previously passed resolution that requested the state legislature to move forward with action against short term lending practices. In a 4-1 vote, the Laurel City Council decided to go back on its decision last month to ask for the state to take action against what some called predatory practices, the Laurel Call Leader reported. The decision was reversed after a group representing the short term lending industry made a presentation to members of the local government, including Mayor Melvin Mack. The mayor said that the previous decision had been made without examining the facts.
"I believe we acted hastily," Mack said Tuesday. "I wanted to hear both sides of the story. We did and this is where we're at right now." But not everyone agreed with their government colleagues. Councilman Trey Chinn, who stood by his previous vote, said that it made him and his colleagues look bad to go back on their vote. "We should make a decision and stand by it," he told the paper. "There are some question marks around this order such as why it came back up and what's the nature of it." There was other news for short term lenders on a national level recently. The Credit Card Accountability, Responsibility and Disclosure Act of 2009 set out new rules for the those looking to gain credit, leaving many to seek out short term lenders.