Bill threatens state rules on payday lending
A pending federal bill could give payday loan businesses a way to circumvent state legislation governing the industry, prompting one Mississippi official to speak out against the measure.
Attorney General Jim Hood has joined attorneys general from 40 other states in opposing the proposed Consumer Credit Access, Innovation and Modernization Act, which would establish a federal charter for consumer credit corporations.
Hood has stated the pending bill proposes regulations weaker than those already in place by current state law.
Many states have established their own framework of regulations to protect consumers from the risks associated with nonbank credit service providers, according to a press release from Hood’s office.