Payday-Loan Measure Advances in Senate

June 9, 2013
Seattle Times 
payday lending news

In Washington state, the Senate Rules Committee recently advanced Senate Bill 5312, which would allow payday lenders to make a new kind of loan up to $1,500 with effective interest rates above 200 percent and six- to 18-month repayment periods. Critics of the bill say it would enable payday lenders to skirt existing regulations that aim to protect borrowers from predatory lending practices by restricting payday loans to $700 and requiring that they be repaid on the borrower's next payday. The bill's sponsor, Sen. Steve Hobbs (D-Lake Stevens), calls the measure "something of a compromise between payday lending and traditional bank loans." He hopes amendments will be added to ban military personnel from obtaining the loans and reduce the fees associated with the loans.
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