Indiana 'loan shark' bill backed by payday and subprime lenders advances to House floor

An Indiana House committee on Tuesday advanced a measure that would allow payday and subprime lenders to charge interest rates on small loans at levels currently classified as felony loan sharking.

The Financial Institutions Committee made several changes to the terms lenders can propose under Senate Bill 613 before its members voted along party lines, 7 to 3, to send the bill to the House floor.

The bill is supported by payday stores and installment loan shops that have hired lobbyists who argue it will provide consumers with more borrowing options. Consumer advocacy groups, though, call such loans predatory, saying they allow lenders to take advantage of people who already are struggling financially.

The committee released a 17-page amendment to the bill about 45 minutes before it met Tuesday that essentially rewrites various parts of the legislation.

Read more: https://www.indystar.com/story/news/politics/2019/04/09/payday-lending-bill-loan-shark-rates-advances-indiana-house-floor/3409696002/