Bill Text: MS HB1377 | 2024 | Regular Session | Comm Sub
Bill Title: MS Consumer Alternative Installment Loan Act; require Dept.of Banking to issue memo authorizing new maximum loan amount and revise amount calculation.
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Failed) 2024-04-02 - Died In Committee [HB1377 Detail]
Download: Mississippi-2024-HB1377-Comm_Sub.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Banking and Financial Services
By: Representatives Aguirre, Anthony, Bell (21st), Boyd (37th), Burnett, Hale, Hall, Hawkins, Mattox, Rosebud, Turner, Varner
House Bill 1377
(COMMITTEE SUBSTITUTE)
AN ACT TO AMEND SECTION 75-67-181, MISSISSIPPI CODE OF 1972, TO REQUIRE THE MISSISSIPPI DEPARTMENT OF BANKING AND CONSUMER FINANCE TO ISSUE A MEMO ON JULY 1, 2024, AND ON JULY 1 FOR EACH SUBSEQUENT CALENDAR YEAR, AUTHORIZING A NEW MAXIMUM LOAN AMOUNT AS PERMITTED UNDER THIS ACT; TO PROVIDE THE METHOD OF CALCULATING SUCH NEW MAXIMUM LOAN AMOUNT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-181, Mississippi Code of 1972, is amended as follows:
75-67-181. (1) On July 1, 2024, the Mississippi Department of Banking and Consumer Finance shall issue a memo authorizing a new maximum loan amount permitted under this section. Such new amount shall be calculated by applying any increase or decrease in the United States CPI-U (Consumer Price Index) from July 1, 2016, to December 31, 2023, to the maximum loan amount permitted under this section. For each subsequent calendar year, on or before July 1, the Mississippi Department of Banking and Consumer Finance shall issue a memo authorizing a new maximum loan amount permitted under this section. Such new amount shall be calculated by applying any increase or decrease in the United States CPI-U (Consumer Price Index) for the previous calendar year to the previous maximum loan amount.
(2) In lieu of the interest and charges in Section 75-17-21, on loans of Four Thousand Dollars ($4,000.00) or less, a licensee may contract and charge a monthly finance charge not to exceed an annual percentage rate, calculated according to the actuarial method, of fifty-nine percent (59%) per annum on the unpaid balance of the amount financed.
SECTION 2. This act shall take effect and be in force from and after its passage.
