But payday loan providers argue this can put them away from company.
Payday financing is a billion-and-a-half-dollar-a-year industry in Washington State and growing вЂ” rapidly. Some lawmakers and advocates when it comes to poor desire to cap rates of interest on these shortвЂ“term, high-interest loans. The fight has kicked-off a lobbying frenzy which is dividing majority Democrats. Olympia Correspondent Austin Jenkins reports.
SHERRY APPLETON IS A DEMOCRAT WHEN YOU LOOK AT THE WASHINGTON STATE HOUSE OF REPRESENTATIVES. SHE THINKS IT REALLY IS OUTRAGEOUS THAT THE ANNUAL INTEREST ON PAYDAY ADVANCES CAN TOP THREE HUNDRED PERCENTAGE. SHE SAYS IT TRAPS THE INDEGENT IN A period OF DEBT.
APPLETON: “It is about usury. Therefore we outlawed usury a very long time ago.”
SO THIS APPLETON IS SPONSORING A BILL THAT WOULD CAP THE ANNUAL INTEREST RATE ON PAYDAY LOANS AT THIRTY-SIX PERCENT year. THE ISSUE IS APPLETON CANNOT OBTAIN A HEARING ON HER BEHALF BILL. SHE BLAMES THE PAYDAY FINANCING BUSINESS.
APPLETON:”I simply understand that they have been in a position to persuade the committee that this really is bad and they are going to be placed out of business.”
THE GUY STANDING WITHIN THE Method OF REPRESENTATIVE APPLETON’S BILL IS STEVE KIRBY. HE IS EVEN A DEMOCRAT AND SEAT OF THIS HOUSE BANKING COMMITTEE.
REPORTER: “Why can you maybe perhaps not help a thirty-six per cent cap on payday advances?”
KIRBY: “A thirty-six per cent cap on payday lending is really a red-herring problem to start with.