Payday lending bill faces uncertain fate in Indiana Senate

("Indiana Statehouse" by Shawna Pierson, CC BY 2.0)

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here