Texas, Mississippi considering short term loan bills

Legislators in Texas and Mississippi are both considering bills that would change the way short term lenders can provide short-term loans to residents of their states. A Texas Senate committee recently heard a bill filed by Senator Wendy Davis that would cap interest rates on short term loans and subject short term lenders to the same oversight as banks and credit unions, the Star-Telegram of Fort Worth, Texas, reports.  Though Davis said the loans can hurt consumers, short-term financing options such as those offered by short term lenders and car title lenders can actually give customers an alternative to long-term bank loans, for which many people do not qualify. In Mississippi, Governor Haley Barbour is expected to sign a bill that would reduce the interest fees of short term loans, the Clarion Ledger of Jackson, Mississippi, reports. The new law caps fees on loans and gives residents at least 28 days to repay larger loans, the paper reports. The law is good news for short term loan companies in the state, says one lender who owns 28 stores in Mississippi. Dan Robinson told the paper he thinks "the legislators looked at our track record and saw we had a 13-year track record with less complaints than any other business."