Mississippi

Payday Loans in Mississippi

At a Glance
Mississippi
  • Nickname: The Magnolia State
  • Population: 2.99 million
  • Capital: Jackson
  • Website: www.ms.gov

The southern state of Mississippi is rich in history and renowned for being a hub of all kinds of music, including gospel, jazz, country, and rock and roll. It’s also the place to come for some down-home Southern hospitality and delicious dining on foods like fried chicken, fried okra, biscuits and gravy, collard greens, catfish, and cornbread.

Unfortunately, Mississippi is also one of the poorest states in the nation, with a median household income of only $44,717, which is well below the national average of $61,937. Not only is the median household income one of the lowest in the nation, Mississippi also had the highest rate of people living below the poverty line in 2018: 19.8% (the national average in 2018 was 11.8%).

Average Credit Card Debt and Median Household Income in Mississippivs. the U.S.
Mississippi
The U.S.
$5,134
$6,028
Average Credit Card Debt (Q1 2019)
$44,717
$61,937
Median Household Income (2018)

Payday Loans in Mississippi

Mississippi has the highest concentration of licensed payday lenders in the U.S. (around 1,000), which amounts to about six times as many payday lending stores per capita as the national average. The table below shows the 15 counties in Mississippi with the highest concentrations of payday lenders:

Mississippi Counties with the Highest Concentrations of Payday Lenders

County

Tunica

Attala

Leake

Adams

Grenada

Stone

Forrest

Leflore

Panola

Montgomery

Neshoba

Jones

Franklin

Marion

Bolivar

Population per Licensee*

1153

1404

1904

1908

1939

1946

1962

1997

2016

2032

2049

2095

2112

2133

2139

Population per Licensee*

1153

1404

1904

1908

1939

1946

1962

1997

2016

2032

2049

2095

2112

2133

2139

<span style=”text-decoration: underline;”><strong>Loan Volume**</strong></span>

$10,200,400

$17,850,700

$14,025,550

$22,950,900

$15,300,600

$8,925,350

$47,176,850

$24,225,950

$21,675,850

$7,650,300

$17,850,700

$39,526,550

$5,100,200

$15,300,600

$24,225,950

Total Fees Paid***

$2,238,988

$3,918,229

$3,078,608

$5,037,723

$3,358,482

$1,959,114

$10,355,319

$5,317,596

$4,757,849

$1,679,241

$3,918,229

$8,676,078

$1,119,494

$3,358,482

$5,317,596

*2000 Census data.

**This is estimated by multiplying the number of licensees by the national median loan size ($350) by the national average loans per store (3,643).

***Assuming a fee of $21.95 per $100 borrowed.

Source: “High-Cost Payday Lending Traps Mississippi Borrowers” (July, 2010). Johnson, J. Center for Responsible Lending. Accessed December 1, 2019. https://www.responsiblelending.org/payday-lending/policy-legislation/states/2010-CRL-MS-Payday-Issue-Brief-FINAL-July.pdf

 

ccording to Jennifer Johnson of the Center for Responsible Living, the typical Mississippian shells out $691.43 in fees for $350 in loans, and still owes $350 in principal. This equates to $1,041.43 owed for borrowing an initial loan of only $350.

In 2013, payday lending in Mississippi generated $261 million, and more recent figures indicate that the fees associated with payday loans in Mississippi add up to more than $270 million per year. According to a 2010 report by the Center for Responsible Lending, payday lenders in Mississippi gross over $1.2 billion annually.

Payday lending locations are most highly concentrated in low-income, minority neighborhoods. According to a report by the Federal Deposit Insurance Commission (FDIC), 12% of Mississippi residents who make $15,000/year take out payday loans, compared to 7% from the $15,000-$30,000 income bracket.

In Mississippi, 12% of Blacks have taken out at least one payday loan. This is significantly higher than the payday loan borrowing rate among African Americans across the U.S. (10%) as well as the overall national rate, regardless of ethnicity (5%).

  1. “Mississippi is America’s Poorest State” 24/7 Wall St. Accessed March 8, 2017. http://247wallst.com/economy/2016/09/17/mississippi-is-americas-poorest-state/
  2. “State Debt” Ballotpedia. Accessed February 13, 2017. https://ballotpedia.org/State_debt
  3. “In America’s Payday Loan Capital, Innovative Microcredit Helps Break the Debt Cycle” Huffington Post. Accessed March 8, 2017. http://www.huffingtonpost.com/2015/06/20/mississippi-payday-loans_n_7587124.html
  4. “High-Cost Payday Lending Traps Mississippi Borrowers” Center for Responsible Lending. Accessed March 8, 2017. http://www.responsiblelending.org/payday-lending/policy-legislation/states/2010-CRL-MS-Payday-Issue-Brief-FINAL-July.pdf
  5. “Many states have cracked down on payday loans. Here’s how lenders still get away with it.” The Washington Post. Accessed March 8, 2017. https://www.washingtonpost.com/blogs/govbeat/wp/2015/02/09/many-states-have-cracked-down-on-payday-loans-heres-how-lenders-still-get-away-with-it/?utm_term=.53d0e36dd45c
  6. “Payday Loan Consumer Information” CFA. Accessed February 13, 2017. http://www.paydayloaninfo.org/state-information/8
  7. “Payday and Car Title Lenders Drain $8 Billion in Fees Every Year” Center for Responsible Lending. Accessed February 15, 2017. http://responsiblelending.org/sites/default/files/nodes/files/research-publication/crl_statebystate_fee_drain_may2016_0.pdf
  8. “Driven to Disaster: Car-Title Lending and Its Impact on Consumers” CFA. Accessed February 15, 2017. http://www.responsiblelending.org/other-consumer-loans/car-title-loans/research-analysis/CRL-Car-Title-Report-FINAL.pdf
  9. “Car-Title Loan Regulation” Consumer Federation of America. Accessed March 8, 2017. http://www.consumerfed.org/pdfs/Resources.CTL.StateLawTermChart12.2.12.pdf
  10. “Payday and Car Title Lenders Drain $8 Billion in Fees Every Year” Center for Responsible Lending. Accessed February 15, 2017. http://responsiblelending.org/sites/default/files/nodes/files/research-publication/crl_statebystate_fee_drain_may2016_0.pdf
  11. “A Look at U.S. Consumer Credit Card Debt” Experian. Accessed October 28, 2019. https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
  12. “Household Income: 2018: American Community Survey Briefs” Guzman, G. (U.S. Census Bureau). Accessed October 28, 2019. https://www.census.gov/library/stories/2019/09/us-median-household-income-up-in-2018-from-2017.html
  13. “Poverty Data: 2018” Center for American Progress. Accessed December 1, 2019. https://talkpoverty.org/state-year-report/virginia-2018-report/
  14. “Income and Poverty in the United States: 2018” Semega, J., Kollar, M., Creamer, J., & Mohanty, A. (U.S. Census Bureau). Accessed December 1, 2019. https://www.census.gov/library/publications/2019/demo/p60-266.html
  15. “2013 FDIC National Survey of Unbanked and Underbanked Households” (2013). Federal Deposit Insurance Commission (FDIC). Accessed December 1, 2019. https://www.fdic.gov/householdsurvey/2013report.pdf
  16. “Payday Lending and Auto Title Lending: Who Borrows and Why?” (September, 2016). Center for Family Policy and Practice.
  17. “Turning a Cycle of Debt and Dependency Into Financial Security: Rerouting Payday Loan Consumers in Mississippi” (2014). Covington, M. & Edwards, T. Accessed December 1, 2019. https://banksouthern.com/pp/PP_V40_2014.pdf
  18. “High-Cost Payday Lending Traps Mississippi Borrowers” (July, 2010). Johnson, J. Center for Responsible Lending. Accessed December 1, 2019. https://www.responsiblelending.org/payday-lending/policy-legislation/states/2010-CRL-MS-Payday-Issue-Brief-FINAL-July.pdf
  19. “FDIC: Mississippi has least access to banks in nation” (November, 2014). Ayres, J. The Clarion-Ledger. Accessed December 1, 2019. https://www.clarionledger.com/story/money/business/2014/11/14/fdic-mississippi-least-access-banks-nation/19041109/
  20. “In Mississippi, This Quick Way Out of a Financial Hole Often Leads to Bankruptcy” Hall, K. G. & Hampton, P. (October, 2018). Accessed December 1, 2019. https://www.mcclatchydc.com/latest-news/article219888510.html

<img class=”alignnone wp-image-30948″ src=”https://opploans.staging312.com/wp-content/uploads/2019/12/Miss-concentration.png” alt=”” width=”470″ height=”544″ />

Source: Mississippi Department of Banking and Consumer Finance; Mississippi Automated Resource Information System; U.S. Census Bureau; MEPC Analysis

Consumer Protection in Mississippi

How to Report a Lender in Mississippi

Contact the Mississippi Department of Banking and Consumer Finance to file a complaint. The instructions for filing a complaint can be found here, and the complaint form can be downloaded from this page.

The Mississippi Department of Banking and Consumer Finance

 

Guides to Payday Loans in Mississippi

Check out this payday loan guides for the following cities in Mississippi…

Jackson

Works Cited