Lawmaker hopes to close payday lending loophole


10 PEOPLE ARE HOMELESS. THE RED CROSS IS PROVIDING ASSISTANCE. IN 2008 PAYDAY LENDERS ARE OPERATING WITH ALMOST NO OVERSIGHT. TED HART HAS DETAILS ON PLAN TO CLOSE A GAPING LOOPHOLE IN THE LAW. THERE MAY BE ANOTHER SHOWDOWN WITH THE PAYDAY LOAN INDUSTRY. THERE IS A RALLY PLANNED FOR TOMORROW. Reporter: THE 2008 LAW WAS SUPPOSED TO INTEREST RATES AT 28%. THE INK ON IT WAS NOT TRIBAL OR THE BUSINESS STARTED OPERATING UNDER A SEPARATE LAW AS CREDIT SERVICE ORGANIZATIONS. NOT ONE PAYDAY LENDER HAS BEEN LICENSED UNDER THIS LEGISLATION THAT WAS PASSED IN 2008. EVERY PAYDAY LENDER IS CURRENTLY WORKING THROUGH THE LOOP HOLE. SO MUCH FOR CAPPING FEES. AND IT — AT ADVANCE AMERICA, A 14 DAY LOAN FOR 537 DOLLARS HAS A 220% INTEREST LOAN RATE. THESE PEOPLE ARE IN A VULNERABLE SITUATION. — Reporter: THIS WOULD MONTHLY LOAN FEES AT $20 AND RICK WIRE THAT BORROWERS BE GIVEN MORE TIME TO PAY OFF THEIR LOANS. HE SAYS EDUCATING CUSTOMERS AS PART OF THE SOLUTION. THIS REQUIRES MORE THAN THAT. THERE’S NO TIME TO TEACH SOMEBODY TO SWIM IF THEY ARE DROWNING. WE NEED TO HELP THEM. Reporter: WE REACHED OUT TO THE LENDERS ASSOCIATION BUT DID NOT HEAR BACK. A RALLY IN SUPPORT OF THE

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