Pawnbrokers, title pledge lenders and check cashers; reduce maximum rate of interest that may be charged for services.

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To: Banking and Financial
Services
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Evans

HOUSE BILL NO. 761

AN ACT TO AMEND SECTIONS 75-67-313 AND 75-67-413, MISSISSIPPI 1
CODE OF 1972, TO PROVIDE THAT THE MAXIMUM AMOUNT THAT PAWNBROKERS 2
AND TITLE PLEDGE LENDERS MAY CHARGE FOR THEIR SERVICES SHALL NOT 3
EXCEED AN ANNUAL PERCENTAGE RATE OF 25% PER ANNUM ON THE AMOUNT OF 4
THE PRINCIPAL AMOUNT ADVANCED IN THE TRANSACTION THAT REMAINS 5
UNPAID; TO AMEND SECTION 75-67-519, MISSISSIPPI CODE OF 1972, TO 6
PROVIDE THAT THE MAXIMUM AMOUNT THAT CHECK CASHERS MAY CHARGE FOR 7
CASHING A DELAYED DEPOSIT CHECK SHALL NOT EXCEED AN ANNUAL 8
PERCENTAGE RATE OF 25% ON THE FACE AMOUNT OF THE CHECK; AND FOR 9
RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. Section 75-67-313, Mississippi Code of 1972, is 12
amended as follows: 13
75-67-313. (1) (a) A pawnbroker may contract for and 14
receive a pawnshop charge * * * for all services, expenses, cost 15
and losses of every nature not to exceed an annual percentage rate 16
of twenty-five percent (25%) per annum on the amount of the 17
principal amount * * * advanced in the pawn transaction that 18
remains unpaid. 19
(b) The provisions of paragraph (a) of this subsection 20
shall not include the fee charged by a third-party processing 21
company for the use of a debit or credit card. Pawnbrokers shall 22
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be allowed to pass the third-party processing company's fee on to 23
the customer if the pawnbroker provides clear and conspicuous 24
notice to all customers that such fee will be applied to the debit 25
and credit card transactions. Said notice must be posted at the 26
point of entry and point of sale and must include: 27
(i) The amount of the fee; 28
(ii) That the fee is for the use of a debit or 29
credit card; and 30
(iii) The type of payment method to which the fee 31
applies. 32
(c) The amount of the fee identified in the provisions 33
of paragraph (b) of this subsection shall be limited to the single 34
transaction cost charged by the third-party processor to the 35
pawnbroker for the use of a credit or debit card. 36
(2) Any interest, charge, or fees contracted for or 37
received, directly or indirectly, in excess of the amount 38
permitted under subsection (1) of this section shall be 39
uncollectible and the pawn transaction shall be void. * * * 40
SECTION 2. Section 75-67-413, Mississippi Code of 1972, is 41
amended as follows: 42
75-67-413. (1) A title pledge lender may contract for and 43
receive a title pledge service charge * * * for all services, 44
expenses, cost and losses of every nature not to exceed an annual 45
percentage rate of twenty-five percent (25%) per annum on the 46
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amount of the principal amount * * * advanced in the title pledge 47
transaction that remains unpaid. 48
(2) Any interest, charge or fees contracted for or received, 49
directly or indirectly, in excess of the amount permitted under 50
subsection (1) of this section shall be uncollectible and the 51
title pledge transaction shall be void. * * * 52
(3) By agreement of the parties, the maturity date of the 53
title pledge transaction may be extended or continued for 54
thirty-day periods, provided that the service charges as specified 55
in subsection (1) are not exceeded for any extensions. All 56
extensions or continuations of the title pledge transaction shall 57
be evidenced in writing. No accrued interest or service charge 58
shall be capitalized or added to the original principal of the 59
title pledge transaction during any extension or continuation. 60
Beginning with the first extension or continuation and at each 61
successive extension or continuation thereafter, the pledgor shall 62
be required to reduce the principal amount financed by at least 63
ten percent (10%) of the original principal amount of the title 64
pledge transaction. Notwithstanding any provision in this article 65
to the contrary, if the pledgor fails to pay at least ten percent 66
(10%) of the original principal amount at any such extension or 67
continuation, the title pledge lender may, at its option, either 68
(a) declare the outstanding principal and any service charges to 69
be immediately due and payable, or (b) allow the transaction to be 70
extended or continued, provided that the title pledge lender shall 71
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reduce the principal amount of the loan by ten percent (10%) of 72
the original principal amount solely for the purposes of 73
calculating its service charge. This reduction in principal shall 74
continue to be owing by the pledgor in accordance with the title 75
pledge transaction, but that amount shall not be entitled to 76
accrue interest or service charges thereafter. 77
(4) Any additional payment of funds on the same pledged 78
property must be evidenced by a separate title pledge agreement. 79
A title pledge lender shall not advance funds to a pledgor to pay 80
off an existing title pledge agreement. 81
SECTION 3. Section 75-67-519, Mississippi Code of 1972, is 82
amended as follows: 83
75-67-519. (1) (a) A licensee may delay the deposit of a 84
personal check cashed for a customer with a face amount of not 85
more than Two Hundred Fifty Dollars ($250.00) for up to thirty 86
(30) days under the provisions of this section. 87
(b) A licensee shall enter into a written agreement for 88
a delayed deposit transaction of a personal check cashed for a 89
customer with a face amount of more than Two Hundred Fifty Dollars 90
($250.00) but not more than Five Hundred Dollars ($500.00) for a 91
period of at least twenty-eight (28) days but not more than thirty 92
(30) days, as selected by the customer, under the provisions of 93
this section, with the licensee having the option to deposit or 94
collect the check. 95
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(2) The face amount of delayed deposit checks cashed under 96
the provisions of this section shall not exceed Five Hundred 97
Dollars ($500.00), including the amount of the fees. Each 98
customer is limited to a maximum amount of Five Hundred Dollars 99
($500.00), including the amount of the fees, at any time. 100
(3) Each delayed deposit check cashed by a licensee shall be 101
documented by a written agreement that has been signed by the 102
customer and the licensee. The written agreement shall contain a 103
statement of the total amount of any fees charged, expressed as a 104
dollar amount and as an annual percentage rate. The written 105
agreement shall authorize the licensee to delay deposit of the 106
personal check with a face amount of not more than Two Hundred 107
Fifty Dollars ($250.00) until a specific date not later than 108
thirty (30) days from the date of the transaction, and shall 109
authorize the licensee to delay deposit or collection of the 110
personal check with a face amount of more than Two Hundred Fifty 111
Dollars ($250.00) but not more than Five Hundred Dollars ($500.00) 112
in accordance with the written agreement. 113
(4) * * * A licensee shall not directly or indirectly charge 114
any fee or other consideration in excess of * * * an annual 115
percentage rate of twenty-five percent (25%) on the face amount of 116
the check. 117
* * * 118
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* * * In no event shall the amount of the checks cashed 119
exceed Five Hundred Dollars ($500.00), including the amount of the 120
fee. 121
(5) No check cashed under the provisions of this section 122
shall be repaid by the proceeds of another check cashed by the 123
same licensee or any affiliate of the licensee. A licensee shall 124
not renew or otherwise extend any delayed deposit check. 125
(6) A licensee shall not offer discount catalog sales or 126
other similar inducements as part of a delayed deposit 127
transaction. 128
(7) A licensee shall not charge a late fee or collection fee 129
on any deferred deposit transaction as a result of a returned 130
check or the default by the customer in timely payment to the 131
licensee. Notwithstanding anything to the contrary contained in 132
this section, a licensee may charge a processing fee, not to 133
exceed an amount authorized by the commissioner, for a check 134
returned for any reason, including, without limitation, 135
insufficient funds, closed account or stop payment, if such 136
processing fee is authorized in the written agreement signed by 137
the customer and licensee. In addition, if a licensee takes legal 138
action against a customer to collect the amount of a delayed 139
deposit check for which the licensee has not obtained payment and 140
obtains a judgment against the customer for the amount of that 141
check, the licensee shall also be entitled to any court-awarded 142
fees. 143
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ST: Pawnbrokers, title pledge lenders and check
cashers; reduce maximum rate of interest that
may be charged for services.
(8) When cashing a delayed deposit check, a licensee may pay 144
the customer in the form of the licensee's business check or a 145
money order; however, no additional fee may then be charged by the 146
licensee for cashing the licensee's business check or money order 147
issued to the customer. 148
(9) Before entering any transactions under this section, a 149
licensee shall provide to the customer a pamphlet prepared by the 150
commissioner that describes general information about the 151
transaction and about the customer's rights and responsibilities 152
in the transaction, and that includes the consumer hotline phone 153
number to the Mississippi Department of Banking and Consumer 154
Finance and to the Mississippi Attorney General's office. Each 155
agreement executed by a licensee shall include the following 156
statement, which shall be located just above the signature line 157
for the customer: 158
"In addition to agreeing to the terms of this agreement, I 159
acknowledge, by my signature below, the receipt of a consumer 160
education pamphlet regarding this transaction." 161
SECTION 4. This act shall take effect and be in force from 162
and after July 1, 2026. 163