High-Cost Payday Lending Traps Mississippi Borrowers
A CRL analysis finds that payday lenders charge up to 572 percent APR for two-week loans at over 900 payday lending outlets in Mississippi. The typical borrower in that state pays an estimated $691 fees for a $350 payday loan repeatedly renewed, and still owes the principal. Overall, payday lending drains $270 million from Mississippi families every year.
An exemption allowing payday lenders to charge many times the 36 percent APR cap in Mississippi expires in 2012, but the payday lending industry has always fought hard to protect their exempt status. We expect a tough fight during the 2011 legislative session.
Published: July 26, 2010