Payday lending legislation in Idaho's House of Representatives just squeaked by in a March 17 vote, winning approval by a margin of 35 to 34.
Senate Bill 1314 has already passed in the Senate and now moves to the desk of Gov. Butch Otter, who will either enact it or veto it. If it is signed into law, lenders will be required to limit payday advances to no more than 25 percent of a borrower's monthly income and provide adjusted repayment plans, at no extra interest or administrative cost, to borrowers who request them. Moreover, payday companies would have to provide specific notifications and instructions -- in writing, in 12 point bold type -- about the nature of payday loans.
Despite the slim victory, there was some grumbling about what were perceived as shortcomings with the bill. Rep. Phylis King (D-Boise) said that some interests would have liked to have seen the amount of payday loans limited to 5 percent of a borrower's monthly income instead of 25 percent and the repayment period stretched to six months instead of the 90 days provided for in SB1314.