Debate over payday lending


RELIGIOUS SLURS BEFORE KILLING HIM. AND ANOTHER VIGIL WILL TAKE PLACE ON FRIDAY NIGHT.>>>NOT WHETHER LOANS SHOULD BE AVAILABLE TO EVERYONE BUT AT WHAT COST. KEVIN RADER HAS THE STORY.>>Reporter: IT IS, UNFORTUNATELY, A BOOMS BUSINESS. ONE IN THREE HOOSIERS HAVE SOME DEBT IN COLLECTIONS AND MANY TURN TO PAYDAY LENDINGED A CAN EXORBITANT RATES.>>IT IS A HARD CYCLE. AS SOON AS YOU GET PAID, YOU HAVE TO PAY IT BACK PLUS INTEREST. YOU ARE ALWAYS GOING BACK TO GET MONEY OUT, z MAKE P z MAKE Y z MAKE E z MAKE T z MAKE S z MAKE A z MAKE D BILLS, AND GOING RIGHT BACK IN THERE AS SOON AS YOU PAY THEM OFF.>>Reporter: PAYDAY LENDERS DRAINED $60 MILLION.>>22AYEs, AND 27NAYs. THE BILL WAS DEFEATED BUT NOT THE POINT NOT LOST.>>29% OF THE BORROWERS BORROW 12 OR MORE TIMES A YEAR.>>Reporter: UNFORTUNATELY, THAT’S NOT FOR EMERGENCY. BUT FOR REGULAR, RECURRING EXPENSES.>>THEY TEND TO BE TARGETED TO LOW INCOME BORROWERS ALREADY FINANCIALLY DISTRESSED AND DON’T HAVE THE MONEY TO PAY THE LOANS BACK.>>Reporter: AND THE LENDERS THEN HAVE THE RIGHT TO CUT THE LINE ON RENT, UTILITY PAYMENTS, CAR PAYMENT, SOCIAL SECURITY, AND EVEN THE BORROWER’S PAYCHECK.>>NOW IS NOT THE TIME TO TRY TO PROTECT THE PAYDAY LOAN COMPANIES. NOW IS THE TIME TO PROTECTED HOOSIERS WHO ARE PREYED UPON BY THESE LOAN COMPANIES.>>REPORTER: JUST GETTING OFF OF WORK.>>WITH THE PERCENTAGE INCREASE, IT’S NOT GOOD. IT’S PRETTY MUCH DIGGING A HOLE DEEPER FOR YOURSELF. I AM GLAD I WAS ABLE TO GET OUT OF IT.>>Reporter: HE RECOMMENDS THAT R5GSS JUST BORROW FROM FRIENDS AND FAMILY.>>WHILE THE STATE SENATE VOTED DOWN.

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