This move pretty much shoots any chances of the bill getting any attention in the Senate.
The bill, sponsored by Rep. Patricia Todd, D-Birmingham, would have limited the amount of interest these companies would be able to charge for their short term loans.
Not really surprising at all. The industry hired every lobbying group they could find, and their pressure was felt.
Rep. Lesley Vance, R-Phenix City announced yesterday, after listening to about 1.5 hours of support for the bill, that he was sending it to the subcommittee, pretty much taking it off the table.
In The Bill
The bill, sponsored by Rep Todd and Rep. Rod Scott, D-Birmingham, consisted of changes and limits they say the industry commonly exploits.
The key points:
- Limit interest rates to 36% APR ( Still way too high )
- Maximum of 6 loans per year
- Create a database for tracking loans
This bill should have went to the senate and been voted on, and it should have passed. Lets take a look at the current laws for these loans:
- Payday loan APR 400%
- Title loan APR 300%
- No limits on the amount of loans you can take out
- No tracking system
The influence of money seems to win every time. These loans are a trap ans should be avoided at all costs. If you find yourself having to use them, pay them off in full on the very first due date and be done with it.