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Mississippi passes short term lending legislation

Jan 19, 2011 Todd Milner

The state government in Mississippi recently passed legislation that would change the rules for short term lenders and give new protection to consumers. The Associated Press reports that the Mississippi House of Representatives approved a bill that gives borrowers more time to pay off the short-term loans and also reduces the amount of interest that lenders can charge. Additionally, the legislation would allow the short term lenders to operate for the next five years. The proposal was debated on the floor for more than an hour. Those in support of the bill said that the lenders give options to people who can't get short-term financing from traditional sources. Representatives from the short term lending industry were satisfied with the actions taken by the state government, and said that they had acted appropriately. "The House clearly recognizes that this is a product that meets the needs of consumers," said Jamie Fulmer, a spokesman for a short term company in an interview with the source. In the run-up to the vote, other industry representatives highlighted the importance of the industry. In an interview with the Clarion Ledger, Dan Robinson, a spokesman for a short term lender, said that there was a significant need for short-term credit for people who "can't get [the loans] anywhere else."