A crackdown on payday lenders that lawmakers haven’t passed is a step closer to going before voters next year.
The Short-Term Loan Consumer Protection Amendment will look familiar to many, according to Don Brey, the lawyer for the group of activists and faith leaders that wants it approved. “It’s basically, with a couple tweaks, the same as House Bill 123,” Brey said.
That’s the bill that would impose a strict 28 percent interest rate cap on payday loans, along with other restrictions on fees, rules and disclosures. It’s passed a House committee but hasn’t come to the floor because there’s still no Speaker. It’s strongly opposed by payday lenders, who say it could shut down stores and cut off access to people who need those loans. The group needs to collect more than 300,000 signatures in the hopes of being on next year’s fall ballot.