House members kill bill to cap interest rates on payday loans
BATON ROUGE, LA (WAFB) - A move to cap interest rates on payday loans was shot down in the House Commerce Committee Monday afternoon.
Payday loan reform is one of the hot button issues this session at the Louisiana State Capitol. Payday loan industry leaders have spared no expenses in hiring lobbyists to protect current payday laws.
However, consumer groups and other interested parties are lining up against the payday loan industry.
"You might not make this mistake, you might know better than this, but think about your elderly parents, think about your adult children," said Diane Hanley with Together Baton Rouge. "It will happen to our adult children. It will happen to our elderly relatives. It happened to mine."
HB 239, which is sponsored by state Rep. Ted James, D-Baton Rouge, was designed to cap a maximum of 36 percent on any short term loan. The House Commerce Committee voted 10 to 8 to kill the bill.
Rep. James voluntarily deferred the bill.
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