SB 2571 Summary

• Establishes the Mississippi Consumer Alternative Installment Loan Act to regulate consumer installment loans made by licensed lenders under the Small Loan Privilege Tax Law, administered by the Commissioner of Banking and Consumer Finance.

• Sets maximum charges for loans including monthly account handling fees ($20-$118 depending on loan size), closing fees (up to 10% for loans $500-$1,000 and 4% for loans $1,000-$4,000), and deferment charges, with closing fees adjusted annually by Consumer Price Index.

• Requires loans to be fully amortizing with minimum 9 substantially equal monthly payments and 272-day maturity period, prohibits conditioning credit on electronic fund transfers or post-dated checks, and prohibits supplemental loan products.

• Mandates licensees verify borrowers' income documentation and prohibit loans where monthly payments exceed 22.5% of gross monthly income; requires reporting to credit reporting agencies and inclusion of Department contact information in loan agreements.

• Establishes enforcement authority for the Commissioner including examination powers (limited to once per two years unless for cause), civil penalties up to $500 per violation, and authority to enjoin violations.