Indiana payday lending bill


*BROOK*) MORE OPTIONS TO HELP YOU GET FAST CASH? THERE’S A BILL MAKING ITS WAY THROUGH THE STATEHOUSE THAT SUPPORTERS SAY COULD EXPAND PAYDAY LENDING IN OUR STATE. *PHI*) BUT, THE OPPOSITION FEELS LIKE YOU’RE THE ONE WHO COULD WIND UP SHORT- CHANGED. STATEHOUSE BUREAU CHIEF, DAVID WILLIAMS REPORTS. *DAVID WILLIAMS REPORTIN*) THERE ARE MORE PAY DAY LOAN CENTERS IN THE U- S, THAN THERE ARE MCDONALDS LOCATIONS. THAT’S ACCORDING TO THE FEDERAL RESERVE BANK OF ST. LOUIS. THOSE LOANS ARE MARKETED AS A CONVENIENT WAY TO GET CASH QUICKLY. ((ERIN MACEY/SR. POLICY ANALYST, INDIANA INSTITUTE FOR WORKING FAMILIES: 11:03:57 “WE’RE TALKING ABOUT FINANCIALLY DISTRESSED HOUSEHOLDS THAT ARE THEN PAYING EXORBITENT RATES TO BORROW SMALL AMOUNTS OF MONEY THAT ARE DUE ON THEIR NEXT PAYDAY. WHAT WE KNOW IS THOSE BORROWERS GENERALLY CAN’T REPAY THE LOAN THEIR NEXT PAYDAY, SO THEY RENEW, AND RENEW, AND RENEW.”)) SUPPORTERS, OF A SENATE LENDING BILL, LIKE SENATOR ANDY ZAY ARGUE THE BILL CREATES MORE LENDING OPTIONS FOR PEOPLE WITH POOR CREDIT. ((STATE SENATOR ANDY ZAY/(R) HUNTINGTON: 11:14:11 “SO, WHAT THE LEGISLATION TRIED TO DO IS CREATE SOME OPTIONS IN BETWEEN, AT MUCH LOWER INTEREST RATES. ONE OF THEM, A MAXIMUM WOULD BE 40% LESS THAN WHAT’S CURRENTLY AVAILABLE. THE OTHER WOULD, 70% LESS THAN WHAT’S CURRENTLY AVAILABLE. THROUH THAT, WE BELIEVE THIS WILL CREATE SOME STAIR STEPS AND OPPORTUNITES FOR FOLKS IN THAT AREA.”)) ERIN MACEY, IS WITH INDIANA’S INSTITUTE FOR WORKING FAMILIES ((ERIN MACEY/SR. POLICY ANALYST, INDIANA INSTITUTE FOR WORKING FAMILIES/ 11:02:36 “THIS BILL WOULD ALLOW PAYDAY AND SUBPRIME LENDERS TO MAKE MUCH LARGER AND MUCH LONGER LOANS.”:)) WITH ACTUALLY HIGHER INTEREST RATES, SHE ARGUES. ((ERIN MACEY/SR. POLICY ANALYST, INDIANA INSTITUTE FOR WORKING FAMILIES 11:04:22 “NOW, WHAT WE’RE GOING IS LEGALIZING WHAT IS CURRENTLY CONSIDERED FELONY LOAN SHARKING. WE’RE ALLOWING PEOPLE TO MAKE INSTALLMENT LOANS AT RATES IN EXCESS OF 72%.”:)) ((STATE SEN. ANDY ZAY @ 11:18:33 “IT’S SIMPLY NOT TRUE. IT’S A COMMUNITY THAT EXISTS. SUBPRIME LENDING IS HERE.”/:)) ((STATE SEN. ANDY ZAY/ 11:19:25 “ON THE OTHER SIDE OF THE COIN, THERE’S A MILLION HOOSIERS THAT DO HAVE SUBPRIME CREDIT. WE EITHER PUT THEM IN A POSITION WHERE IT’S A REGULATED ARENA, OR WE KIND OF TURN IT TO THE WILD, WILD WEST. I THINK WHAT WE HAVE PROPOSED IS A VERY RESPONSIBLE AND PRUDENT OPTION.”:)) ((DAVID WILLIAMS 11:11:45 “THE BILL ALREADY PASSED THE SENATE. IT’S NOW IN THE HANDS OF THE HOUSE FINANCIAL INSTITUTIONS COMMITTEE. IN THE STATEHOUSE, I’M DAVID WILLIAMS, WISH TV NEWS EIGHT.”/:))

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