A week after a House committee dealt a blow to payday and title loan reform, efforts on the issue are continuing, in the form of negotiation and legislation.
The legislation also would limit the number of loans a person could take out in a year, and establish a central database to enforce loan limits, two common aspects of payday and title loan reform.
Currently, payday lenders can charge up to 456 APR on loans they give their customers, which typically extend for 14- to 30-day periods. Title loan lenders, who are governed under a separate law, can charge up to 300 percent APR. Critics have accused the industry of trapping their customers in cycles of debt, where customers take out multiple loans to pay back the interest and principal on earlier ones.
"I don't profess to know where interest stops and usury begins, but I believe we're way past that point when we're at 300 percent interest rates," Beason said Thursday.
The industry has said that it provides lending services that traditional lenders do not, and that caps on the interest they charge would drive them out of business. An attempt Thursday to reach
Last week, members of a House committee, many of whom had received contributions from the industry, voted to refer a payday loan cap bill sponsored by Rep.
Scott said Thursday he had briefly spoken with representatives of the title loan industry this week.
"We understand the parameters, we just don't have hard numbers," he said. "I still think that's the case. We're down to the negotiating part."
"From our standpoint, having it in one bill will keep it alive, because of what happened (to the legislation) in the House," she said.
The prospects for the
"If we need to move forward to pass legislation to open up the database, I want to do that," he said.
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