HB 1396 Summary

• Establishes the Mississippi Consumer Installment Loan Act to regulate consumer installment loans, requiring lenders to obtain a valid license from the Commissioner of Banking and Consumer Finance.

• Sets maximum interest rates at 99% annually for loans of $1,500 or less, and permits closing fees up to 10% for smaller loans and 4% (minimum $25) for loans up to $4,000.

• Prohibits lenders from conditioning credit on mandatory electronic fund transfers and requires loans to be fully amortizing with minimum 6 monthly payments over at least 180 days.

• Restricts lending to consumers whose monthly loan payments would exceed 22.5% of gross monthly income, verified by pay stubs or official documentation.

• Allows municipalities and counties to enact ordinances consistent with but not more restrictive than this act, and exempts licensees from liability when acting in conformity with commissioner rules or official regulatory guidance.