Mark Price is killing it on the payday lending bill. Here’s a status update from Mark on House bill 2191, which flew through committee yesterday. It is moving disturbingly fast, as bills with powerful moneyed backers are wont to do.
If you aren’t familiar with payday lending, it is extremely evil stuff, and exactly the sort of private tyranny that we need the state to regulate.
Mark posts a Daily Review op-ed that hits all the right notes. It’s a good place to start if you’re looking to get caught up on the issue:
Yet some lawmakers favor a bill that would allow payday lenders to operate legally in Pennsylvania, under the rationale that some borrowers have obtained such loans over the Internet despite the state prohibition, or have obtained them in neighboring states.
Rolling over is not the way to protect Pennsylvania consumers, however.
The bill purports to protect consumers from bad practices by limiting interest rates to “just” 28 percent, but it doesn’t limit fees. Nor does it preclude borrowing even against Social Security or veterans’ benefits. Several original cosponsors have taken a closer look at the bill and withdrawn their support. Good for them.