What you need to know about payday loans
LITTLE ROCK, Ark.
(AP) The latest on payday loans and a U.S. court ruling on them:A federal judge in Mississippi says the state can’t stop payday lenders from charging higher interest rates than other lenders.
The judge ruled Thursday that a payday loan borrower has a right to the same access to a credit union that other borrowers have, including the ability to borrow on behalf of another.
Mississippi Attorney General Tate Reeves says the ruling gives consumers access to credit that they couldn’t previously get.
He said the ruling is a major victory for the state’s economy, which has been struggling in recent years.
The ruling came in response to a lawsuit filed by a nonprofit group called the Center for Consumer Freedom, which sought to block payday lending in Mississippi.
It’s the latest in a string of court decisions that have left payday lenders vulnerable to lawsuits and are also the latest battle for consumer advocates.
The court ruling came just hours after a federal judge sided with payday lenders who said they shouldn’t have to comply with federal law that requires lenders to offer borrowers the same services they offer other businesses.
The U.N. Committee Against Illicit Financing said in a statement Thursday that it supports efforts to crack down on predatory lending.