| Feb, 2009
A House committee today approved a bill aimed at tracking Kentucky's payday loan industry - but consumer advocates said they are outraged the bill doesn't do more to curb what they say are widespread abuses.
"It's just usury," said the Rev. Keith Switzer, with the Louisville based organization.
But industry representatives who attended the hearing of the House Banking and Insurance Committee said their business provides an important service to people who may have an unexpected emergency and need a short term loan.
House Bill 444 would create a state-run computer database to provide more effective monitoring of the high-interest, short-term loans. State law now limits people to no more than two loans totaling $500 at a time — but provides no way to track that, sponsor said.
The House last year passed a bill to create a database that also would have imposed more restrictions on loans and interest companies can charge but the bill died in the Senate. Bell said in an interview that by at least approving a database, the state could better regulate the industry and get a sense of the scope of payday lending.
“Right now, we’re operating in the dark,” he said.
Payday industry representatives said today they do not oppose Bell’s bill but would object to further restrictions, such as limits on interest and fees.
Source ::Courier-journal.com |
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