Louisiana legislators check out expand вЂPaydayвЂ™ lending, harming borrowers
Predatory payday financing drains a lot more than $240 million every year from Louisiana employees by saddling vulnerable borrowers with high-interest loans which they usually cannot pay for. But alternatively of trying to deal with this nagging issue, the Legislature is considering a bill that could allow it to be worse.
Senate Bill 365 (authored by Senator Rick Ward, III) is designed to expand predatory lending in Louisiana by enabling payday and automobile title lenders to issue вЂњinstallment loansвЂќ with annual interest levels as high as 167 per cent. The balance will be pressed by national payday lenders as a method to evade brand new federal regulations that protect customers. Comparable bills have been completely refused in lot of other states (Florida being the lone exception).
Senator Rick Ward III