Wednesday, March 26, 2008

NEW PAYDAY LOAN BILL PASSES FIRST SENATE TEST

Wednesday/March26/2008

Good news for borrowers: the U.S. Senate has given initial approval to proposed legislation which would make interest rates on payday loans more attractive than ever.

House Bill 1310 would cap rates on cash advances -- as well as limit the transaction fees charged to consumers. The proposed bill also would keep borrowers from extending their loans repeatedly, or taking out multiple loans, both of which make repayment a lot tougher to manage for the consumer.

The bill now goes to the Senate Appropriations Committee for consideration, before returning to the Senate for final approval.

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