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The year in business: Payday loan debate heats up in Baton Rouge …

Lobbyists for the payday loan industry stormed Baton Rouge over the summer as state lawmakers deliberated tighter controls on short-term, high-interest loans.

Proponents for stricter rules argued payday loans prey on the working class and trap them in a cycle of debt that can ruin their credit.

But payday lenders said restrictions would put them out of business and stymie a much-needed source of lending for the poor.

By the end of the 2014 legislative session, the payday loan industry had beaten back several proposals to limits its activity. But the fight isn’t over.

What happened: The Legislature considered several proposals putting limits on payday loans during the 2014 session.

Initial bills, sponsored by Rep. Ted James, D – Baton Rouge and Sen. Ben Nevers, D – Bogalusa, proposed capping payday loan interest rates at 36 percent annually.

A later draft abandoned the 36 percent cap and instead proposed limiting borrowers to 10 payday loans per year. It also required payday lenders to enter transaction into a database reviewed by the Office of Financial Institutions.

The bill failed on the Senate floor in late April, despite the support of consumer advocates, including AARP Louisiana and Louisiana Together, a statewide network of religious and civic organizations.

Senators who voted against the bill were wary of placing limits on lending, which they said could damage the industry and hurt consumers.

What’s next: AARP Louisiana, Louisiana Together and other groups that led the initial charge for limits have vowed to continue their push in the 2015 session.

Payday lenders are likely to face heightened scrutiny in coming years, even if Louisiana rules do not change.

Federal regulators have already cracked down on banks that offer short-term products.

In July, the Consumer Financial Protection Bureau reached a $10 million settlement with payday lender ACE Cash Express over illegal debt collection tactics. The agency, which became the first to oversee payday loans in 2012, is in the process of drafting rules for the entire industry.

In the meantime, traditional lenders, including Liberty Bank & Trust in New Orleans, are experimenting with ways to offer small loans and other products tailored for low-income borrowers.

[…]

New Mexico urged to limit ‘payday’ loan rates

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MARTIN: Encouraged by some developments

One of the worst things a person without the financial wherewithal to repay a loan can do is take out a so-called “payday” or “storefront” loan to buy Christmas gifts.

But, with the holidays here, and because it is so easy to get such loans, that’s exactly what many low-income people are likely to do. Predatory lenders encourage the practice.

That’s the message University of New Mexico law professor Nathalie Martin hopes to get out to would-be borrowers. She would also like to see interest rates capped statewide at 36 percent.

“I think it’s getting a little more likely that the state Legislature will act,” she said.

Martin – and others – are encouraged by a number of developments:

In 2007, with broad bipartisan support, President Bush signed the Military Lending Act, placing a 36 percent limit on interest rates on loans to armed forces personnel. In September, with lenders seeking to circumvent the MLA, the Defense Department proposed new and stronger regulations to shore up the law. The cities of Albuquerque, Santa Fe, Alamogordo and Las Cruces, and Doña Ana County – and the New Mexico Municipal League and Association of Counties – have adopted resolutions supporting a 36 percent annual percentage rate cap. Eighteen states have imposed interest rate limits of 36 percent or lower, most of them in recent years. In Georgia, it is now a crime to charge exorbitant interest on loans to people without the means to pay them back. In 2007, New Mexico enacted a law capping interest rates on “payday” loans at 400 percent. Many of the lenders quickly changed the loan descriptions from “payday” to “installment,” “title” or “signature” to get around the law.

But this past summer, the New Mexico Supreme Court, citing studies by Martin, held that “signature” loans issued by B&B Investment Group were “unconscionable.” B&B’s interest rates were 1,000 percent or higher.

High-interest lenders argue that they provide a much-needed source of funds for people who would not ordinarily qualify for loans, even those who are truly in need. One lender, Cash Store, in an ad typical for the industry promises borrowers that they can get “cash in hand in as little as 20 minutes during our regular business hours – no waiting overnight for the money you need” and boasts a loan approval rate of over 90 percent. It also offers “competitive terms and NO credit required. Be treated with respect by friendly store associates. Installment loans are a fast, easy way to get up to $2,500.”

Pushing a cap

Martin teaches commercial and consumer law. She also works in the law school’s “live clinic,” where she first came into contact with those she calls “real-life clients,” people who had fallen into the trap of payday loans.

“I would never have thought in my wildest dreams that this was legal, interest rates of 500 percent, 1,000 percent or even higher,” she said.

Martin is not alone in fighting sky-high interest rates and supporting a 36 percent cap.

Assistant Attorney General Karen Meyers of the Consumer Protection Division noted that it wasn’t simply interest rates that the Supreme Court unanimously objected to as procedurally unconscionable in New Mexico v. B&B Investment Group.

The court also addressed the way the loans were marketed and the fact that B&B “aggressively pursued borrowers to get them to increase the principal of their loans,” all of which constitutes a violation of law.

In another lawsuit from 2012, New Mexico v. FastBucks, the judge found the loans to be “Unfair or deceptive trade practices and unconscionable trade practices (which) are unlawful.”

Long legal road

Both the B&B and Fastbucks cases were filed in 2009 and ultimately went to trial. The time period indicates the commitment of the Attorney General’s Office and how long it takes a case to wend its way through the legal system.

Each of the cases dealt with one business entity, although they often do business under several names. B&B, for example, an Illinois company, operated as Cash Loans Now and American Cash Loans.

According to the president of B&B, James Bartlett, the company came to New Mexico to do business because “there was no usury cap” here.

Early this year, a survey by Public Policy Polling found that 86 percent of New Mexicans support capping interest at an annual rate of 36 percent. Many people think that is too high.

Meyers said predatory lending profits depend on repeat loans. Analysts estimate that the business only becomes profitable when customers have rolled over their loans four or five times.

‘Really heartbreaking’

“We have interviewed a lot of consumers,” she said. “It’s really heartbreaking.”

Steve Fischman, a former state senator and chairman of the New Mexico Fair Lending Coalition, said three-fourths of short-term borrowers in the state roll over loans into new loans, which is precisely what predatory lenders want.

“New Mexico is one of the worst states when it comes to such loans, because we have the weakest law,” he said.

The coalition is working with lawmakers to draft a bill that would impose the 36 percent cap. It is likely to come up in the next session. But the chances of passage, despite popular sentiment, are unknown.

The Legislature has failed to act in the past, Fischman said, largely because of the many paid lobbyists – including former lawmakers – working for the lenders. He described the Roundhouse back-slapping as “bipartisan corruption.”

The National Institute on Money in State Politics, a nonpartisan national archive of such donations, reports that, thus far this year, payday lenders have made 122 contributions totalling $97,630 to state lawmakers.

Opponents of storefront loans say one way some lenders entice the poor into taking out loans is to cajole them with smiles and misinformation. Loan offices – often in lower-income neighborhoods – often become places for people to hang out and socialize. Agents behind the loan office desks pass themselves off as friends.

But, Fischman said, “A lot of people thought Bernie Madoff was their friend.”

Creating crises

The Pew Charitable Trust and the Center for Responsible Lending, acting independently, reported last year that the cost of the loans turn temporary financial shortfalls into long-term crises. After rolling their initial loans over, perhaps more than once, borrowers find that they’re paying up to 40 percent of their paychecks to repay the loans.

Prosperity Works, an Albuquerque-based nonprofit striving to improve financial circumstances for lower-income New Mexicans, is a strong supporter of the effort to cap loans.

President and CEO Ona Porter said one drawback of the short-term, high-interest loans is the effect they often have on individuals’ credit ratings. “And credit scores are now used as a primary screen for employment,” she said.

The loans do little, if anything, to boost the state’s economy. A 2013 study by the Center for Community Economic Development found that, for every dollar spent on storefront loan fees, 24 cents is subtracted from economic activity.

UNM’s Martin has conducted five studies related to high-cost lending practices. She firmly believes that low-income people are better off if they don’t take out unlimited numbers of high-cost loans and that such forms of credit cause more harm than good.

“They are neither safe nor affordable,” she said.

[…]

S.C. State gets first money from S.C. loan

South Carolina State University has drawn out about $847,000 of a $6 million loan approved by the S.C. Budget and Control Board on April 30.

Scott Hawkins, the agency’s public information officer, reported on Monday that the budget board has made two cash transfers to the university, $600,000 to meet recent payroll expenses and $246,903 for debt service.

Hawkins noted that up to $500,000 of the loan is to be used by the budget board to retain auditing/consulting services to assess the university’s financial needs and management.

The university has applied for the remainder of the loan to be spent in the following order of priority: debt service and other secured obligations, payroll and other critical operating expenses, and vendor payments.

Earlier, S.C. State President Thomas Elzey reported that funds were reserved for payroll through June and would not have to be taken from the loan funds. However, at a recent board meeting, he told trustees there had been a “miscalculation” and monies were being drawn down from the loan for payroll as well as debt service.

Hawkins said the budget board is working to verify how much the institution owes to vendors and which invoices meet standards set up by the board’s April 30 resolution authorizing the money for S.C. State, he said.

He reported that “the board continues to work with SCSU to monitor their cash-flow situation to ensure that the university will be able to meet its payroll and debt-service obligations. This will be an ongoing review,” he said.

S.C. State has operated with a deficit for at least eight years.

In February, Elzey reported to the budget board that he anticipated the university would end fiscal year 2014 with a deficit of more than $13 million. He called on the Legislature to appropriate funds to pay it off.

The April 30 loan, called a “Band Aid” by some, was designed to help the university meet its most pressing bills while waiting on the Legislature to take action on the university’s request.

The $6 million must be collected by the university before the end of June, and the university will have to begin repaying the loan by the beginning of the 2015-16 school year.

Last week, the Legislature passed a bill creating a committee to create an accountability plan and specific steps to ensure financial stability at S.C. State. The bill also provides bailout money for the university once the accountability plan is in place.

Contact the writer: dlinder-altman@timesanddemocrat.com or 803-533-5529.

[…]

Missouri lawmakers pass changes to payday loans | FOX2now.com

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JEFFERSON CITY, MO (AP) – Missouri lawmakers have final approval to legislation that would eliminate renewals on payday loans and lower the interest lenders can charge.

The Senate voted to send the bill to Gov. Jay Nixon Thursday with a 26-4 vote. The House passed the same measure earlier this week.

Current law allows payday loans to be renewed up to six times and permits lenders to charge fees and interest up to 75 percent of the original loan amount. The legislation abolishes the renewals and reduces the cap on interest to 35 percent. Borrowers could also enroll in an extended payment plan without being charged additional fees on interest.

In Missouri, these small, unsecured loans can be up to $500 and last from 14 to 31 days.

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Payday loans is SB694

Online:

Legislature: http://www.moga.mo.gov

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State, local leaders mull payday loan regulations | Amarillo Globe …

AUSTIN — The week before Christmas, the Houston City Council voted overwhelmingly to regulate the so-called payday and auto title lenders, the largely unregulated industry critics call predatory because it often charges interest rates of 500 percent or more if borrowers don’t repay their short-term loans on time.

Could Amarillo and Lubbock be next?

The Amarillo City Council will consider the possibility of an ordinance this year, said Mayor Paul Harpole.

And in Lubbock, at the recommendation of Councilman Todd Klein, that city council is considering the creation of a task force to look into the issue and then make recommendations to city officials and to the Legislature. Klein’s ordinance, if passed, would give the task force research and advisory responsibilities that would allow the city to move forward on a bill in the future. The aim of the task force is to influence state leaders to initiate regulations that protect citizens from the triple-digit interest rates that often accompany payday loans.

Houston Councilman Andrew Burks said his city had no choice because the Texas Legislature has failed to pass legislation that would regulate the state’s $4 billion-a-year industry.

“Our Legislature, they had the ball and dropped it,” Burks said before the 15-2 vote, the Houston Chronicle reported.

“I don’t like this, but I have to vote for it because … this is the only thing on the table, and it does something.”

Houston joined Austin, Dallas, El Paso, San Antonio and more than a dozen other Texas cities that have passed similar ordinances in recent years.

For consumer advocates and even for some state legislators, there is no point bothering with the Legislature. If Texas communities want more regulation of the payday and auto title lenders, they must pass their own ordinances because the Legislature does not have the will to approve any state oversight, they argue.

“Amarillo, Lubbock and other cities would probably be better off if they passed their own ordinances because it looks like (in the 2015 session) there’ll be another uphill battle to pass meaningful payday legislation,” consumer advocate Don Baylor said.

The March 4 Republican primary defeat of Sen. John Carona of Dallas and the likelihood of a more conservative Texas Senate cast serious doubts the Legislature can pass any payday lending reforms next year, said Baylor, senior policy analyst at liberal think tank Center for Public Policy Priorities.

In the last two sessions Carona filed bills to regulate the industry, but his proposals failed because — as he said on the Senate floor last year — the industry’s lobby is too powerful.

The prospects of another failed attempt prompted Reps. Tom Craddick, R-Midland, and Mike Villarreal, D-San Antonio — who filed similar proposals last year and intends to try again next year — to advise cities to pass their own ordinances.

“It is time for Midland, Odessa and other West Texas cities to step up and protect their residents from predatory payday and auto title loans,” Craddick and Villarreal wrote in a March 31 op-ed column in the Midland Reporter-Telegram.

Industry officials counter such criticism, saying the 3,500 stores in the state — including 25 in Amarillo — allow cash-strapped consumers to get instant loans, especially when they have an emergency.

“The industry provides a needed service,” spokesman Rob Norcross said. “I worked with banks and credit unions in the past, and because of their restrictions, it is extremely difficult for banks and credit unions to make loans of less than $5,000, especially when there is no collateral.”

Most payday loans are for less than $1,000.

Rep. Four Price said though he understands the frustration of his House colleagues and of consumer advocates, he is not ready to declare payday lending reform bills dead on arrival.

“I think there are a lot of members who agree that sensible reform is needed,” said Price, R-
Amarillo. “Payday lending is more prevalent now, and the members are seeing what some of the cities they represent are doing.”

Regardless of what happens next year, the payday lending issue is expected to remain in the spotlight. It has even become an issue in this year’s gubernatorial race.

Democrat Wendy Davis has accused Republican Greg Abbott of being in the pocket of the industry. On Jan. 4, Davis accused Abbott — Texas attorney general for 11 years — of receiving at least $195,000 in campaign contributions from the industry.

However, the Davis campaign had to drastically revise its figures because a day earlier its estimate was of nearly $400,000.

In December, William White, chairman of the Finance Commission of Texas — the agency charged with protecting Texas consumers — told the El Paso Times it is the borrowers, not the lenders, who are responsible when they get trapped in a cycle of debt.

“People are responsible for their decisions, just like in my life and in your life,” White, an appointee of Gov. Rick Perry and vice president of Cash America, one of the largest payday lenders, told the newspaper.

[…]

Chautauqua County Legislature OKs $150,000 loan to bail out Forestville

MAYVILLE – The Chautauqua County Legislature Wednesday voted to give a $150,000 loan to the cash-strapped village of Forestville.

The loan, which carries a 3 percent interest rate, is due by June 15,2019. The village’s sales tax revenue would be garnished if payments are not made to the county by the deadline.

County Legislator George Borrello, R-Silver Creek, said, “most primarily I am concerned about these hardworking residents of the village of Forestville.”

He said the financial issues were inherited by the current Forestville leaders. Two loans were called in by Evans Bank in 2009. One loan for $250,000 was taken out in 2009 to pay for the demolition of a building on Main Street. The five-year note was due this year and board members had only made a single payment. Evans Bank decided to call in a second note for $150,000, which was provided in 2010 for the replacement of a water line on Bennett State Road.

The combined $400,000 is about four times the annual operating budget for the small village. Village officials were projecting a tax increase of more than 400 percent.

Forestville Mayor Kevin Johnson said he met with the village trustees Tuesday and they agreed to abide by any regulations attached to the loan for the village. “I would like to thank you from 800 souls who needed some help,” Johnson said.

Among the speakers in support of the resolution was Doug Flowers, a Forestville resident who said he is a Carriage House employee and also stands to lose his job in the next year. He said any financial help that could be provided would be greatly appreciated. The closing of the Carriage House facility was announced in February.

The stipulations to the agreement require the village to have a comprehensive audit of the past five years. It also requires that the Village Board seek funding to help pay for a study to look at options on consolidation, dissolution or shared services with other municipalities. The Village Board will also allow a committee of representatives, including County Executive Vince Horrigan, to look over the finances and policies of the village.

The vote was approved with 18 in favor and only Legislator Lisa VanStrom, R-West Ellicott, opposed. She explained after the session that she was uncomfortable with the county setting a precedent by loaning money to the village. She also stated that she had read the comptroller’s report and learned that there were other issues with village finances.

Forestville’s trustees will announce a final budget and tax rate that has been recalculated after the loan is applied at a meeting at 7 p.m. on April 29.

In other matters, the Legislature approved and accepted a $130,00 grant from the federal Office of Emergency Services. The funding will be used to reimburse volunteer firefighters for college tuition. Firefighters must have served at least five years and maintain a “C” average.

Appointments were confirmed for Legislator Janet Keefe, D-Fredonia, to serve on the board of directors for Chautauqua Opportunities. Legislators Shaun Heenan, D-Dunkirk, and Keith Ahlstrom, D-Dunkirk, were named to the Chautauqua County Visitors Bureau Board of Directors.

[…]

BEAM: Next Up Is Payday Loans – The Hayride


BEAM: Next Up Is Payday Loans

Posted by: Jim Beam on Monday, March 24, 2014, 9:51

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Payday loans will be a hot topic for the coming week at the Louisiana Legislature. The industry has offices all over the place, sometimes three at the same location. Obviously, there is a demand for their services, but at what cost?

Those are short-term, highinterest loans that are based on the borrower’s next paycheck. A person can get a quick $100 loan to help pay his bills by writing a postdated check, including the interest, that the loan office agrees not to cash until payday. The interest on that $100 varies, but it has been reported that a typical loan of that amount costs $30 in interest, which is more than 780 percent annually.

Industry spokesmen deny the rates are that high. Troy McCullen, the owner of 31 pay day loan locations in Louisiana, said state law prohibits much of what the companies are alleged to be doing.

Two bills that will be heard at the Legislature should help clear the air, but their sponsors insist the industry definitely needs tougher regulations. Most of the citizens who take out pay day loans are already in desperate financial situations and don’t need to get deeper in debt.

A number of organizations are pushing for tighter controls. They include AARP Louisiana, the Louisiana Budget Project, Habitat for Humanity, Catholic bishops, ministers and community organizers and United Way of Southeast Louisiana. They make up the Louisiana Coalition for Responsible Lending.

Together Baton Rouge, another member, said Louisiana families paid over $196 million in fees and interest on pay day loans in 2011 and 57,000 households take out loans each year.

Senate Bill 84 by Sen. Ben Nevers, D-Bogalusa, is scheduled for a Tuesday hearing before the Senate Commerce Committee. A similar measure (House Bill 239) has been filed by Rep. Ted James, D-Baton Rouge. They want to cap the annual interest rate at 36 percent.

The Louisiana House Democratic Caucus said the state has one of the highest concentrations of pay day loan storefronts in the nation, with more than four of them for every McDonald’s. Jan Moller, executive director of the Budget Project, told The Advocate there are some 1,000 storefront pay day lenders operating in Louisiana.

James said, “State law allows pay day lenders to get away with charging customers interest rates of more than 300 percent, compared to 24 percent for credit cards. These outrageous interest rates trap many hard-working people into long-term debt.”

When those who borrow don’t repay the loans, they really get into deep debt. The Budget Project said on average, borrowers recycle loans nine times, which translates to paying $270 in fees on a $100 loan. They pay fees to renew their loans and then renew them again and again, or take out more pay day loans.

The proposed legislation would prohibit lenders from rolling over the loans and improve the way loans are handled.

The last serious effort the Legislature made to tighten controls on pay day loans came in 1999. Foster Campbell, a current member of the Louisiana Public Service Commission and former state senator, wanted to limit the annual interest rate to 72 percent. He said the prime interest rate at the time was 7.75 percent.

“If you can’t make it on nine times the prime, I feel sorry for you,” Campbell said at the time.

State Rep. John Travis, D-Jackson, had a House bill in 1999 that set the annual loan rate at 180 percent, which was 16.75 percent for the two- to fourweek life of the loans. He said it was deceiving to compare interest rates because the loans are short-term transactions. His bill passed unanimously and he was opposed to the 6 percent rate that was approved by the Senate.

“Anybody who votes to kill this bill (with the 16.75 percent) wants things to continue as they are,” Travis told House members. He won out in the end.

The Associated Press in 2000 said before the change pushed by Travis it was routine for borrowers to pay $45 in fees to get $201 for 14 days, which translates to an annual percentage rate of 583.7 percent. Under the Travis bill, a lender could charge up to $40.44 on the same loans, or an annual rate of 523.1 percent, not much of a change.

Fees are another problem. There was an effort to curb them in 1999, but legislators took action in 2010 that allowed increased fees.

Some who take out pay day loans don’t want the government to get more involved. And the industry said tougher regulations will drive their customers to loan sharks. However, some critics of the loans believe the pay day companies are loan sharks themselves.

LaPolitics Weekly reported last week the pay day loan bills are the most “lobbied up” measures at the legislative session so far. It said at least 40 lobbyists representing the companies met for a strategy session. So, you know we are talking big bucks here.

Most legislators in office in 1999 supported the bills by Campbell and Travis, because they made some improvements in the pay day loan business. However, Travis wouldn’t agree to any major changes. We will soon find out how serious legislators are this time around about reforming a loan system that takes unfair advantage of people who are already down on their luck.

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[…]

Payday loan bill advances (AUDIO) – Missourinet

A proposed law that could keep some customers of payday loans from becoming victims of payday loans is close to approval by the state senate.

The legislature has been trying to put some limits on payday loan companies for years. This time, the industry is not fighting the effort. Rogersville Senator Mike Cunningham is not trying to shut down the industry. He’s trying to limit opportunities for customers to get into trouble.

Cunningham says payday loan companies are needed because banks don’t want to make small loans of the kind a customer sought one day while he was visiting one of those stores–a few dollars to buy a new washing machine because hers had broken..

A key feature of his bill prohibits borrowers from having more than one loan at a time. And it prohibits rollover loans. Cunningham admits his bill is flawed on that point. But the alternative to the flaw is worse. “How you would enforce it, I don’t know, and when you do try that you drive people to the internet to borrow money, where you lose all control,” he says.

The bill lets people have an extended payment plan with no interest charged during that time, but not a loan to pay off a loan.

The bill can go to the House with one more favorable vote.

AUDIO: debate segment 30:19

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[…]

City of Montgomery puts moratorium on title pawn, payday loan …

MONTGOMERY, Alabama – After more than a month of discussion, city council members voted 5-3 Tuesday to halt the licensing of new payday loan businesses, according to local news reports.

Businesses such as Cash Express on Atlanta Highway are not affected, but a city council vote Tuesday means the city will halt the licensing of new title and payday loan businesses for three months. (Janita Poe/JPoe@al.com)

The Montgomery City Council voted 5-3 to put a hold on allowing more of the businesses in the city so staff can study what the 11 other Alabama cities that have also approved moratoriums are doing, according to a news report about the vote in the Montgomery Advertiser.

The vote authorizes the city to set a moratorium of 90 days on new title loan or payday loan businesses, according to a news story on the WSFA Channel 12 News website. The measure does not affect any currently operating payday loan business.

Mayor Todd Strange said the city will take 30 days to study other cities in the state with similar laws. Some cities that have moratoriums include Tuscaloosa, Birmingham and Trussville, the Advertiser reported.

The Alabama Legislature attempted to pass laws to regulate the industry during the last session, to protect consumers who reportedly pay on average 300 percent interest on the loan over the course of a year.

At the city council meeting on Aug. 20, Councilmen Richard Bollinger and Charles Smith said they were concerned about the large number of the establishments already in the area, particularly along Atlanta Highway from Ann Street to the Eastern Boulevard.

The council considered a vote on the moratorium then but could not vote on it during that meeting.

usinesses such as EZ Money on Atlanta Highway are not affected, but a city council vote Tuesday means the city will halt the licensing of new title and payday loan businesses for three months. (Janita Poe/JPoe@al.com)

At the state level, lawmakers also have attempted to pass laws to better regularly the industry during the last Alabama Legislature session.

In April, the senate banking and insurance committee approved a bill to lower the fees charged by payday lenders, to limit the number of loans a consumer could receive and to set up a database to keep track of loans.

Proponents of the state bill said payday loans hurt consumers and that the bill would be a good step toward tightening regulations on the business. They say the fees currently allowed equate to an annual percentage rate of more than 400 percent on a two-week loan.

But payday loan industry representatives who spoke before the committee in April said the proposed law would not allow them to remain profitable and would drive more consumers to use unregulated Internet lenders. They said the changes could put them out of business and eliminate jobs.

According to a spokesperson with the Alabama State Banking Department, the bill has not passed the House or Senate nor have any other recent bills to further regulate payday loan operations.

For more on Tuesday’s vote, please visit the Montgomery Advertiser or WSFA Channel 12 News websites.

[…]

Bills Limiting Payday Loans Dead in Legislature | CBS 8 News …

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Bills Limiting Payday Loans Dead in Legislature | CBS 8 News | CBS 8 Montgomery Newsroom

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Bills Limiting Payday Loans Dead in Legislature

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By Alabama News Network
By Jamie Langley

Story Created: May 6, 2013 at 7:30 AM CDT

Story Updated: May 6, 2013 at 7:30 AM CDT

MONTGOMERY, Ala. (AP) – Efforts by some legislators to put new restrictions on payday loans and title loans are dead for the 2013 session of the Alabama Legislature.

Two Democratic representatives from Birmingham, Rod Scott and Patricia Todd, sponsored bills to lower the interest rates that could be charged on payday loans and title loans to 36 percent annually. The bills stalled in a House committee after industry leaders said the bills would put them out of business.

Then Senate President Pro Tem Del Marsh of Anniston offered a bill to lower rates on payday loans, but not as much as the House legislation. His bill also drew industry opposition. Marsh said his bill is dead because there isn’t enough support or time left in the session to pass it.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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