INDIANAPOLIS (AP) – The top Republican in the Indiana Senate opposes a payday lending bill that critics say would allow for predatory annual percentage rates as high as 222%.
Senate leader David Long of Fort Wayne says he’s “not a big fan” of the bill, which cleared the House last month.
Long’s remarks come amid a chorus of opposition to it from faith-based groups, including House Speaker Brian Bosma’s own church.
It’s a felony under state law to offer loans with an annual percentage rate greater than 72%, but an analysis by Indiana Institute for Working Families found the bill would allow for annual percentage rates as high as 222% on short-term loans between $605 and $1,500.
Payday lenders say the bill is important because it gives consumers options.