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PAYDAY LOANS
by Anonymous on Thursday, February 07, 2008 @ 04:41:16 AST
One Idaho lawmaker wants consumers who take out payday loans to be notified of debt and credit counseling each time they borrow.
Rep. John Rusche, D-Lewiston, says the bill he introduced today that would require so-called payday lenders to supplement their loan paperwork with a list of all the registered credit counselors in the state.
PAY DAY CASH ADVANCE: One Idaho lawmaker wants consumers who take out payday loans to be notified of debt and credit counseling each time they borrow.
Rep. John Rusche, D-Lewiston, says the bill he introduced today that would require so-called payday lenders to supplement their loan paperwork with a list of all the registered credit counselors in the state.
Rusche says it's a small step ... but one that could help people struggling with their finances. He says many consumers would be better off if they could plan long-term and avoid the high fees attached to payday loans.
The Idaho Department of Finance says consumers in the state took out more than 500,000 payday loans worth more than $175 million in 2006. The average fee for a two-week loan was $19.
The department's consumer finance bureau chief Mike Larsen says he believes consumers will take notice of the list when they take out payday loans.
The House Business Committee unanimously approved the bill for a full hearing.
Rusche says it's a small step ... but one that could help people struggling with their finances. He says many consumers would be better off if they could plan long-term and avoid the high fees attached to payday loans.
The Idaho Department of Finance says consumers in the state took out more than 500,000 payday loans worth more than $175 million in 2006. The average fee for a two-week loan was $19.
The department's consumer finance bureau chief Mike Larsen says he believes consumers will take notice of the list when they take out payday loans.
The House Business Committee unanimously approved the bill for a full hearing.
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