Attempts at Payday Lending 'Compromise' Collapse

July 2, 2013
Providence Journal 
payday lending news

Rhode Island lawmakers were unable to hammer out a compromise for limiting the interest rate on payday loans, reform advocates say. The Rhode Island Payday Lending Reform Coalition supported bills in the House and Senate that would cap interest on short-term payday loans at 36 percent, compared to the current 260 percent. More than 70 legislators endorsed the bills. However, "insider deals and long-standing political relationships have trumped good policy and common sense consumer protection," said Margaux Morisseau, the coalition's co-chair. It is the third year that legislation to regulate payday loans has been introduced and failed to move out of committee, leaving Rhode Island as the only state in New England that has not reined in exorbitant payday lending rates.
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