CREDIT REPAIR LAWS IN MISSISSIPPI

Are you thinking of starting a credit repair business in Mississippi? Here are the things you should know, including the credit repair laws of the state.

Mississippi is among the poorest state in America. It is ranked as the nation’s worst state to live in in a study that was released in 2015 by 24/7 Wall Street. Mississippi also holds the lowest average credit score, 681, in the USA. The nation’s average credit score is 714. This means that many residents of the states are struggling with poor credit score compared to other states and needs help to repair their credit.

 

Here is the table of Mississippi’s Average Credit Vs. the Total Average Credit of the United States according to categories.

 

Types of Debt Mississippi Average Credit USA Total Average Credit
Average Mortgage Debt $132,875 $220,380
Average Credit Card Debt $5,134 $5,221
Average Auto Loan Debt $23,121 $20,987
Average Student Loan Debt $36,902 $39,487
Personal Loan Debt $17,692 $17,064

 

Mississippi is one with the lowest average mortgage debts in the country, second only to West Virginia, which has $130,675 average mortgage debts. In addition, it holds the nation’s lowest average credit card debt at $5,134 only. This is much lower than Alaska’s $8,026 average credit card debt, which is the highest in the country.

 

The major reason for the state’s low average debts is due to its affordability. It ranked 7th as the most affordable state to live in. However, it is also the state with the lowest median household income at $44,966. This is only 42% of Maryland’s $94,384 median household income, which is the highest in the country.

 

Building a credit repair business in Mississippi can help improve people’s financial status. But before starting your business, it is crucial to understand the Mississippi credit repair laws to ensure you abide by their rules and regulations.

 

The credit repair laws in Mississippi protect the state’s residents from fraudulent activities that might abuse consumer rights. This should guide credit repair specialists to start a credit repair business and operate legally.

Here is a summary of the credit repair laws in Mississippi according to the state’s Debt Management Services Act

 

Mississippi’s Credit Laws on Licensure 

 

  • No person or business may act as a credit repair service provider without licenses issued by the state. 
  • Should pay an initial license fee of $750 for the first year, and should pay an annual renewal fee of $475 should be paid to the state’s commissioner. 
  • Failure to pay the annual renewal fee before December 31 of each year will make the license invalid or expire. 
  • A license to operate a credit repair business in Mississippi should be issued within 30 days from the day the commissioner accepts the application. 
  • If the application is denied, the commissioner will issue a written notice stating the reasons for the denial.

 

Mississippi Credit Repair Laws Surety Bond

 

  • Before performing any credit repair services, you must pay a surety bond of $50,000 to the state of Mississippi to protect the consumers against any violation of the state’s credit laws. 

 

Written Agreement Requirement When Providing Credit Repair Services in the State.

 

No person or business shall perform any credit repair services without providing a complete written agreement of the services to be done for the consumer.

 

Credit repair consumer and service provider written agreement shall include the following:

 

  • Name and address of the consumer and the credit repair specialist in Mississippi.
  • A full description of the services to be performed.
  • Expected fees for the services to be performed.
  • Disclosure of the existence of the surety bond. 
  • A notice that the consumer may contact the Department of Banking and Consumer Finance of Mississippi for any questions or complaints regarding the credit repair business or specialist.
  • Written notice of cancellation attached.
  • A full description and schedule of the amounts to be given to the credit repair service provider for payment to the consumer’s creditor. Including the amount to be remitted to each creditor. 
  • A notice that by signing the agreement, the consumer authorizes the federally insured institution to disclose financial records relating to the escrow accounts in which the consumer funds are held to the state commissioner during the course of any examination of the credit repair specialist by the commissioner. 
  • This line: NOTICE TO CONSUMER: Do not sign this agreement before you read it. You must be given a copy of this agreement.

 

Allowed Fees Charged to the Consumer According to Mississippi Credit Laws

 

  • A one-time fee not to exceed $75
  • A maintenance fee not to exceed $30 per month after the free initial counseling session.
  • Fee for obtaining a consumer’s credit report. Shall not exceed $15 for an individual report or $25 for a joint report.
  • Not more than a $50 fee for educational courses/products that will help the consumer in improving financial status. 
  • A bankruptcy consultation fee not exceeding $50 per consumer. 

 

Mississippi Credit Repair Laws Prohibited Acts

 

No person or credit repair business in Mississippi shall:

 

  • Purchase any debt of a consumer.
  • Lend money to a consumer.
  • Obtain a mortgage property of a consumer.
  • Operate as a debt collector.
  • Making false claims that the services to be performed will result in negative amortization of the consumer’s obligation to the creditors. 

 

** Disclaimer:

We aim to provide the most accurate information regarding Florida’s credit repair laws under Florida Statute. However, please note that the laws may change anytime. We recommend doing more research for further information. Or consulting a lawyer about credit repair services law.

 

Now that you understand the probability of success in building a credit repair business in Mississippi and the credit repair laws of the state, here is what you need to become an efficient credit repair specialist.

 

How to start a credit repair business in Mississippi?  

 

  1. Obtain a $50 surety bond.
  2. Get a license from the state commissioner.
  3. Get reliable credit repair software to make your work fast, accurate, and more efficient and to accommodate endless customers. I recommend getting an all-in-one credit repair software for business that not only work as a credit repair software but also has marketing, sales, and CRM capabilities, like Credit Money Machine Web.

 

Here are more articles to help to build and run a profitable credit repair business in Mississippi.