From May to September, 83 percent of the payday loan industry’s revenue in Kentucky was generated by borrowers who took out five or more loans, according to an analysis by Melissa Fry Konty, a sociologist and researcher for the Mountain Association for Community Economic Development in Berea.

After taking out a payday loan, if consumers still face a cash shortfall, they have all other other options available.  They can bounce  a check, use overdraft protection, borrow from family, etc.  The fact that they choose another payday advance demonstrates that it’s a more affordable services than the other choices.

The hearing, which will include public testimony on the impact on consumers, will be from 2 to 4 p.m. at Shiloh Baptist Church, 237 East Fifth Street, in Lexington. Another hearing is scheduled for Nov. 9 in Newport.

Yea, it launched today… on a Friday… the last day of the month… and on the biggest/busiest weekend in the state of Kentucky… Derby weekend. (Well, at least it’s a big deal in the biggest city/market in KY – Louisville) Don’t worry about changing the way business is done and causing stress for consumers and the businesses that service them on the worst possible day of the entire year KY DFI. I’m sure there was some logical reason the database HAD to be launched TODAY. I’m just not smart enough or “in the know” to understand it I guess.

State law limits customers to two payday loans at a time, totaling $500. With the database, customers who exceed the limit won’t be able to receive a new payday loan until they pay off prior loans.

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.

Payday lenders can roll out their own arguments against the criticisms. {Committee Chairman} Greer’s refusal deprives lawmakers and the public of the benefits of that debate.

Nonsense.  They had a debate last year and want to see how the new law works before they revisit the issue.

Rep. Jeff Greer, D-Brandenburg, chairman of the House Banking and Insurance Committee, said Wednesday that he doesn’t plan to call House Bill 381 for a hearing this session because he wants to give a new electronic system meant to monitor the payday industry time to work.Greer, whose committee heard testimony about the system from the state Department of Financial Institutions on Wednesday, said in an interview that the state needs time to gather data it currently lacks.

“More than four million loans were made in 2008 to Kentuckians who paid more than 400 percent in interest on those loans. So, we see a huge problem with payday lending in the state of Kentucky.”

How many Kentuckians were able to make a car payment or pay a utility because they had access to short-term credit?  Oh, they didn’t study that.