ND measure to cut payday loan limits defeated
A possible economic slowdown in North Dakota didn't persuade the state House to reduce fees and money limits on payday loans.
Fargo Rep. Ed Gruchalla says payday lenders have technology in place to spot borrowers who may be getting overextended. And he says the state has strong regulation of the industry.
Payday lenders offer short-term loans to customers who are waiting for their next paycheck. Gruchalla says the cost of a payday loan is often cheaper than the fees charged for a bank overdraft.
North Dakota's House voted 88-5 on Tuesday to defeat a bill to lower the maximum fees and lending amounts on payday loans.
The bill sought to cut the fees from 20 to 15 percent, reduce the maximum loan from $500 to $250, and put a $300 limit on what someone may borrow from a payday lender. The limit now is $600.
Source :: Forbes.com
