Payday Pundit

Actually, the development is taking place in Washingon, but would affect Arkansas’ usary laws.  According to the Northwest (Arkansas) Morning News:

{Senator Blanche} Lincoln wants to change a federal banking law to allow non-bank lenders to charge higher interest. The new interest rate cap would be 17 percent.

She said Wednesday that the Arkansas Student Loan Authority would have difficulty finding banks to buy bonds because of the state’s usury law.

Without lifting the interest rate cap, the authority “will be in dire straits in September,” when it provides loans to college students in the state, she said.

Lincoln has introduced similar legislation in three previous congressional sessions.

Because anti-payday lending forces in Arkansas are opposing this, the Payday Pundit obviously supports it.