Mississippi attorney general opposes payday lending bill

The attorney general of Mississippi, Jim Hood, opposes legislation before the United States Congress that concerns payday lending businesses. Although seemingly removed from the lives of many Mississippians and other Americans, the future of such legislation can have significant impact on the repossession of personal property and other financial challenges that individuals may face.

Congress is currently considering legislation that would affect payday lending businesses, which also includes installment type lenders, companies that issue prepaid cards, car title lenders and check cashing outfits. If enacted, the bill would preempt state laws that regulate these businesses. It would allow payday lenders to extend credit to individuals as long as they believe that the individuals have a reasonable ability to repay the loans. Thus, the legislation would eliminate more stringent state standards. In light of this, many state leaders - including the Mississippi attorney general - are opposed to the legislation.

Payday lenders play an intricate role in the lives of many individuals in Mississippi and nationwide. Often, Mississippians turn to such lenders for quick cash to alleviate financial challenges like unemployment or unsteady income. In order to secure their transactions with such customers, payday lenders and car title lenders often require a security interest in personal property, like a car. In the event that an individual defaults on a loan, the lender can then seek to recover the actual loan as well as pursue repossession of the secured personal property.

It's clear that legislation concerning payday lenders directly affects individuals in Mississippi and citizens throughout the country. It can play a significant role in an individual's financial challenges, particularly if stringent standards are not in place to prevent such predatory lenders from taking advantage of individuals.

Fortunately, in addition to seeking protection from state leaders like the Mississippi attorney general, Mississippians can take such matters into their own hands. Often, the law provides solutions if individuals run into trouble with payday lenders. They may able to seek the protection offered by the bankruptcy laws in order to stop repossession or provide for a more structured asset forfeiture plan.

Source: WLOX.com, "Hood opposes payday ending bill," Oct. 8, 2012

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