Legislative period is upon us, and, again, state legislatures in the united states took aim at a common so-called consumer foe вЂ“ the payday financing industry. Despite a rough couple of years for the customer economic solutions sector generally speaking, the payday financing industry proceeded to grow throughout 2009 and, in certain areas, also expand. Those efforts seem to have sputtered out, leaving the current battlegrounds for 2010 in the individual states although early last year saw initiatives at the federal level to curb payday lending.
Last springtime, Congress held hearings regarding the Payday Loan Reform Act (H.R. 1214). H.R. 1214 imposes a 36% per rate cap on payday loans of $2,000 or less year. The balance would produce a federal flooring to which state legislatures can truly add extra state customer defenses. Furthermore, H.R. 1214 removes rollovers giving borrowers a repayment that is three-month without any extra charges or interest fees. Continue reading