Bill > HB1427

This bill reenacts and amends the Mississippi Credit Availability Act, which governs small-dollar lending in the state. The key provisions include increasing the maximum outstanding principal balance for credit availability accounts from $2,500 to $3,250 and establishing an annual adjustment mechanism based on the Consumer Price Index for All Urban Consumers (CPI-U). Starting in 2025, the Department of Banking and Consumer Finance will calculate and issue a memo each year adjusting the maximum outstanding principal balance by applying the previous year's CPI-U change and rounding up to the nearest $10 increment. The bill also extends the repealer (automatic expiration) of the act from July 1, 2026, to July 1, 2030, ensuring continued regulation of these credit transactions. The legislation maintains existing licensing requirements for credit availability businesses, including application processes, fees, background checks, and operational standards. These provisions aim to provide regulated access to small-dollar credit while protecting consumers and establishing clear guidelines for lenders. The act will take effect on July 1, 2025, giving businesses time to prepare for the new maximum loan amount and annual adjustment process.