Kentucky bars new businesses
Anyone reading this book might as well steer clear of Kentucky.
Kentucky lawmakers signed new regulations on payday lenders into law today. Now they are just waiting for the governor’s signature on the legislation.
One provision in the bill places a 10-year moratorium on new payday lenders moving into the area.
Statewide database
The new laws also require a database that keeps track of every payday loan given out in the state. This will allow lenders to easily find out if borrowers already have outstanding payday loans.
Government officials also will use the database to track the interest and fees payday lenders are charging. Some think this is a step toward interest rate caps and fee regulations.
Wrong direction?
Tres Watson, a spokesman of the Community Financial Services Association of America, would be on the front lines to advocate against interest rate caps.
“Payday lenders offer a valuable service and that it would be disastrous if the industry were legislated out of business,” Watson said, and he commends the Kentucky legislature for recognizing that.
South Carolina
A Senate subcommittee in South Carolina also approved payday lending legislation Thursday, which will now move on to the full Senate and the House for a vote. ... click here to read the rest of the article titled "Restrictions on Payday Lenders in Kentucky, South Carolina"
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