Tuesday, February 23, 2010
Groups Push For Cap On Payday Loans
KENTUCKY....
Most of the payday lenders in Kentucky are nationally owned. Tuesday a rally was held at the Capitol to support House Bill 381 which would place a 36% rate cap on all interest rates and fees for small, short-term loans. A new report released Tuesday by the Kentucky Coalition for Responsible Lending states Kentuckians are paying millions of dollars in fees to those lenders. The coalition is pushing for caps on payday loans. The Kentucky Deffered Deposit Association, a trade group representing the payday loan industry, issued a release questioning the motives of some of the national organizations pushing for a cap on payday loans, saying they're funded by an organization that competes with payday lenders, but that claim has been denied.
Most of the payday lenders in Kentucky are nationally owned. Tuesday a rally was held at the Capitol to support House Bill 381 which would place a 36% rate cap on all interest rates and fees for small, short-term loans. A new report released Tuesday by the Kentucky Coalition for Responsible Lending states Kentuckians are paying millions of dollars in fees to those lenders. The coalition is pushing for caps on payday loans. The Kentucky Deffered Deposit Association, a trade group representing the payday loan industry, issued a release questioning the motives of some of the national organizations pushing for a cap on payday loans, saying they're funded by an organization that competes with payday lenders, but that claim has been denied.
# posted by Homer Owens @ 7:00 PM 
