Supporters Plan to Rally for Payday Loan Reform
The debate over payday lending is set to begin anew with a Statehouse rally Wednesday afternoon. Efforts to reduce the annual interest charged by payday lenders have died on Smith Hill for the last two years.
The mayors of Warwick, Cranston, Central Falls and Woonsocket are expected to take part in the rally being staged by the Rhode Island Payday Lending Reform Coalition.
Pay day loans are capped at $500, and are supposed to be paid back within two weeks. The annual interest rate on those loans can amount to 260 percent.
Two lawmakers are sponsoring a bill to cap the annual interest on payday loans at 36 percent. A committee hearing on the legislation is slated next month. Opposition is expected from a national payday lender that employs former House Speaker William Murphy as its lobbyist.