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What’s up with Kentucky?

December 7, 2009 | Kentucky, industry | Comments (0)

From the story:

Members of the Coalition for Responsible Lending said at a news conference Monday in Louisville that they want lawmakers in the 2010 legislative session to cap at 36 percent the annual interest on cash advance loans — the same rate Congress imposed in 2007 on payday loans for military personnel.

Apart from loans to military personnel, payday lenders in Kentucky may charge up to $15 per $100 dollars borrowed — or $75 for the maximum $500, two-week loan — which adds up to an annual interest rate of more than 400 percent, coalition members said Monday.

Does the Coalition for Responsible Lending know that a 36% rate cap is a ban?   Why don’t they talk honestly about what  their proposal means for consumers?

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