Advocates set to press for cutting 260 percent APR on payday loans

Jun 5, 2012

Members of the coalition pushing for cutting the up to 260 percent annual percentage rate interest on payday loans plan to lobby lawmakers at the Statehouse on Wednesday.

Bills (H-7257 and S-2307) to lower the APR to 36 percent remain in the chambers’ respective Corporations Committees, and talks about the legislation is ongoing.

The Reverend Donald Anderson, part of the coalition calling for change, offered this preview of the group’s lobbying effort:

“The big thing that we want to talk to people about is, 260 percent interest is just wrong. It’s not helpful. The industry actually targets people and loans money to people who can’t afford to borrow the money.”

Payday lenders defend their service as useful. And it doesn’t hurt to have as your lobbyist someone like former Speaker William Murphy. The coalition pushing for change also has its own well-connected lobbyist, former Senate Majority Leader Daniel Connors.