Proposal To Cut ND Payday Loan Balances Fees

Wednesday, 28 January, 2009

Payday lenders may become more popular in a sagging economy, and a North Dakota legislator says they should have new restrictions on their payday loans and fees.

A bill introduced by Minot Rep. Woody Thorpe is getting its first hearing in the House's Industry, Business and Labor Committee.

The measure says the limits on payday loan fees should be reduced from 20 to 15 percent.

It seeks to cut maximum loans from $500 to $250, and put a $300 limit on the amount of money someone may borrow from a single payday lender. Now, the limit is $600.

Thorpe says with the economy slowing down, more North Dakotans may be using payday lenders. He says he wants to lower the limits on what the lenders may charge.

Payday lenders offer short-term loans to cover a borrower's expenses until the person gets his or her next paycheck.

Source: msnbc.msn.com