SB 2540 Summary

• Reenacts and extends the Mississippi Credit Availability Act (Sections 75-67-601 through 75-67-637), which allows licensed lenders to offer fully amortized loans of $500-$2,500 payable over 4-12 months with monthly handling fees up to 25% plus a 1% origination fee.

• Establishes licensing requirements through the Department of Banking and Consumer Finance, including a $750 initial license fee and $475 annual renewal fee, with applicants required to maintain $20,000 net worth for the first license and post a $10,000 surety bond.

• Requires lenders to provide written disclosures of all fees, charges, and payment schedules compliant with federal truth-in-lending laws, and grants borrowers a one-business-day rescission period.

• Authorizes late fees of up to 10% of past-due amounts after 10 business days delinquency, and allows collection of reasonable attorney fees and court costs if accounts default for more than 60 days.

• Extends the repeal date of these licensing provisions from July 1, 2018 to July 1, 2022, and makes conforming amendments to title pledge lender and check casher licensing requirements.