They really want a ban
February 26, 2009 | Kentucky, alternatives, customers, industry, industry critics, media coverage | Comments (0)That’s the only way to interpret the groups in Kentucky who say the current bill “doesn’t go far enough.” From the story:
Terry Brooks of Kentucky Youth Advocates said opponents want a cap on interest rates, something Bell has tried to pass in his previous bills. The federal government now caps such pay day loans at 37 percent for military personnel.
“Our position is that the military cap is working,” Brooks said, adding opponents fear this might be “the one bite of the apple” and lawmakers might not be willing to look at interest rates in the future after passing Bell’s bill. Some calculations indicate some pay day lenders charge as much as 391 percent on loans or “deferred deposits.” Such loans are made in anticipation of upcoming customer paychecks and customers are often trapped in a cycle of signing over their paychecks to pay for smaller loans taken out earlier to get them to payday.
The “military cap is working” in the sense that military personnel no longer have access to payday loans. As the Payday Pundit said, these people really want a ban.
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