Cash Pay Advance

Lawmakers plan legislation removing a time limit on fees and interest rates for payday lenders, who advance small amounts of cash to people who put up their next paycheck as security. Consumer advocates claim the payday lending industry skirts the restrictions by directing customers to loans lasting 121 days and longer to charge up to 700 percent in annual interest rates. Brubaker favors a plan payday lenders discussed with the Senate that allows them to charge up to a 400 percent annual interest rate but restricts them from collecting attorney, court and triple damage costs. Brubaker said the bill also requires lenders with both a payday loan license and a consumer loan license to check a database to make sure borrowers don’t take out unauthorized loans. Find Out More

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