Kentucky data base
March 2, 2010 | Kentucky, industry, regulation | Comments (2)Begins on May 1. From the story:
A “real-time” database of payday lending transactions will be up and running as of May 1, according to Charles Vice, Commissioner of the Department of Financial Institutions.
And, according to the CEO of the company, which will operate that database, Kentucky is likely to see a reduction in the number of payday lenders after that. Thomas Reinheimer of Veritec Solutions said his company operates such databases in nine other states and in each, about “18 to 20 percent” of licensed payday lenders closed down once the database was in operation.
The database is required under a law passed last year which was sponsored by Rep. Johnny Bell, D-Glasgow. It makes illegal internet payday loans and requires all payday loan transactions to be entered into the database, including customer name, address, phone number, amount of the loan and the number of loans which the customer has outstanding.
Comments»
These legislators should have all their purchases entered into a database so the state can make sure they can afford what they are buying and are not overpurchasing items, such as desserts which could make them obese. Then they will think twice about passing laws which infringe on the rights of people who are in need of a small loan.
A quote in the story was incorrect. The payday loan transaction volume declines by 15 to 20 percent when loan limits are enforced with a statewide database. Several stories quoted this incorrectly.