INDIANAPOLIS – On Tuesday, the Republican supermajority rejected Senate Bill (SB) 104 while simultaneously approving SB 613. Both bills address payday lenders and small loans: SB 104 would have limited the interest rate of these payday loans while SB 613 creates new types of loans with extremely high interest rates of over 100 percent. State Senator J.D. Ford (D-Indianapolis) had the following comments on the status of these two proposals:
“The Senate Insurance and Financial Institutions Committee worked hard to make sure that SB 104 would protect our Hoosier working families from the predatory and dangerous loans payday lenders provide. A large coalition of groups supported this bill, including social services, veterans’ organizations and religious groups. Why do some senators ignore their testimony and expertise in order to support greedy and profit-hungry payday lenders? Hoosiers are being preyed upon every day, and the Senate chose to ignore their well-being by defeating this bill.
“In the same breath, the Senate just approved legislation that would allow loan companies to prey on Hoosiers even further. SB 613 creates a whole new chapter of policies and new products never before seen in Indiana. This bill also completely bypasses the interest rate limits we have in place. Could you imagine having to pay down a loan with interest rates of 100 percent? If SB 613 becomes law, this fear will become a reality.
“These votes are telling Hoosiers that we are prioritizing profit over protection. Today, we took a step back in our efforts to protect the best interests of our residents. Everyday, working Hoosiers will remember the day their legislators told them that they prefer to listen to payday loan lobbyists over their own constituents.”