From a just published story:
A key Banking and Insurance Committee moved Wednesday to weaken proposed payday lending regulations, killing a provision that would tie the amount of a payday loan to a borrower’s income.
The amendment is good news for payday lenders. The nation’s largest payday lender said it probably could not operate under a provision that would have capped payday loans at $500 or 25 percent of a borrower’s gross paycheck.
Senate President Glenn McConnell, R-Charleston, offered the amendment that strips the income provisions and instead limits payday loans to $500 per transaction and requires a 2-day cooling off period between paid off loans.
Industry leaders breathed a sigh of relief, and consumer advocates mostly just sighed after the close committee vote.
“This still needs more work,” said Sue Berkowitz, director of the Appleseed Center foe Legal Justice in Columbia.
Payday lending is thriving in NV, where there is a loan cap of 25% of the borrowers monthly gross. It is a reasonable cap. You need to be grossing $2000 a month to borrow $500. The restriction is intended to ensure the borrower has the ability to repay (which a good lender would do on their own, but we all know not all lenders were created equal).