Kentucky update:
February 28, 2009 | Kentucky, industry, media coverage, regulation | Comments (0)An organization called CLOUT is pushing a 36% rate cap. Doesn’t look like it’s going anywhere. From the article:
Several attempts have been made in recent years to impose tighter restrictions on interest rates for Kentucky’s payday lending industry, but most have not been successful. One current piece of legislation, House Bill 444, would create a computer database to monitor high-cost loans and make sure that borrowers don’t have more than two such loans at a time.
A House committee approved the bill earlier this week with no interest rate changes, but an amendment was filed Thursday by State Rep. Jim Glenn, D-Owensboro, creating a 36 percent cap — the same limit sought by CLOUT. Kursman said such a limit would amount to “prohibition” for the industry, and wouldn’t allow Check ‘n Go to even cover the cost of utilities in its stores. For every $15 charged on a loan, he said $13 is spent on overhead, loan defaults and other items.
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