Cash Pay Advance

It’s not clear because payday lenders, who typically dump tons of cash into lawmakers’ campaigns, particularly in an election year such as this, are putting on a full-court press to prevent any legislation from passing that might significantly benefit borrowers. Under the Senate bill, lenders still would be able to charge the outrageous annualized rate of 391 percent, but borrowers could only get one loan at a time, and the amount would be limited based on their incomes. Harry Cato, chairman of the Labor, Commerce and Industry Committee, which is reviewing the payday-lending legislation, predicted the committee would propose strong changes that would prevent abuse by lenders and consumers. While legalizing what was at the time illegal, the people’s elected representatives provided no real protections for consumers, leaving them at the mercy of payday lenders. And payday lenders have made it clear they don’t intend to give up their stronghold — or should I say stranglehold — on our state easily. Every time a positive step is made toward protecting consumers, even a small one, the lenders send in lobbyists to undermine the effort. Find Out More

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