A bill heard in the Senate on Wednesday could double the cap on the number of payday loans a person could have in one year. (TRT: 1:17) CLICK TO DOWNLOAD
Sen. Jeannie Darneille, D-Tacoma: (TRT:14 ) CLICK TO DOWNLOAD: “Payday lending practices are by their very nature a predatory lending practice. So they very much effect low income working families who are taking a loan today based on their income in two weeks.”
That’s state Sen. Jeannie Darneille of Tacoma who is a member of the Financial Institutions & Insurance Committee where on Wednesday they heard Senate Bill 5613 – a bill that proposes to double the limit of payday loans someone could take out in a year from 8 to 16.
Sen. Jeannie Darneille, D-Tacoma: (TRT:20 ) CLICK TO DOWNLOAD: “We made substantial reform of that industry in 2009 and have uh, really been able to show that uh 90 percent of those businesses could not maintain their business model after we changed the law – making restrictions on how many times a person can seek a payday loan in any given year.“
A payday loan is a small, high interest, short-term cash loan. Research by the Pew Charitable Trust has found that nearly 70 percent of borrowers nationwide take out payday loans to cover basic expenses like food and rent.
Sen. Jeannie Darneille, D-Tacoma: (TRT:13 ) CLICK TO DOWNLOAD: “So this is another effort by the payday lending industry to expand their access to the limited assets of low income working families in Washington. It’s a bad, bad bill.”
Nicole Vukonich reporting in Olympia.