On Friday, Gov. Chris Gregoire signed the payday lending reform bill into law.

Here is an extensive explanation of how the bill will — pretty substantially — change the payday lending business in Washington. In short, it creates a minimum loan term, allows for borrowers to use a payment plan, limits the number of loans one can take out in a year and creates a statewide real-time payday lending database. It also allows borrowers to sue if lending companies break the laws.

Gregoire signed the bill on Friday.

Tags: payday lending

Someone sent me Rule 37 from the Senate’s rules for consideration. Those rules are what determine whether the payday lending bill will be up for a third (or fourth?) debate in the Senate.

The answer appears to be no. Click to read the rules. (more…)

Tags: payday lending

Check here and scroll down.

What it says: In the Senate, April 23: Notice given to reconsider vote on third reading.

It’s not over yet, apparently. Stay tuned.

Tags: payday lending

Last night, the House and Senate agreed — after a few tries, at least — on a bill to regulate payday lenders.

There are some big changes to current law, but they’re the type of changes that occasional borrowers may not notice. Here’s why.

Regulations do exist now: Loans cannot exceed $700 and lenders cannot charge more than $15 per $100 loaned up to $500. They can charge $10 per $100 on the amount between $500 and $700. There is no minimum loan term.

But the APR – the annual percentage rate — isn’t 15 percent, because APR is a time-dependent formula. So, for example, if you take out a payday loan of $500 to get you to payday two weeks away and pay $15 per $100, your APR is 390 percent.

If, however, you loan the same $500 and pay the same $75 fee but only loan the money for a week, you’re paying an APR of 780 percent. Click through for much more … (more…)

Tags: payday lending

The House voted last night to replace the failing Alaskan Way Viaduct with a deep-bore tunnel – that’s the deal Gov. Chris Gregoire inked earlier this session.

The plan, as Joe Turner notes, has changed a bit, though: The House put in a clause that says the state will not be responsible for any cost overruns.

Gov. Chris Gregoire sent out a release last night congratulating the House for passing the bill.

“This viaduct replacement legislation accomplishes one of two important go-home transportation issues. I now encourage the Senate and House to pass the bond legislation needed to ensure funding to replace the aging state Route 520 bridge. Building a deep bored tunnel and upgrading SR 520 will support a strong economy today and in the future.”

Also last night: The Senate twice debated a bill to regulate payday lenders. The bill creates a minimum loan term — more than 7 days, up to the next paycheck date — allows borrowers to go on payment plans if they can’t repay the loan in full and prohibits lenders from loaning more than 30 percent of a borrowers’ monthly pay.

I’ll post a bit more about it later.

Tags: payday lending, Viaduct

Rep. Sherry Appleton just got up to testify on nine separate bills to regulate payday lenders.

Payday loans are small, short-term loans issued for a fee — not a standard interest rate. For a $100 loan, for example, you might pay a $15 fee and the loan would be due at your next pay date — typically two weeks.

Appleton started her testimony by saying that she wasn’t feeling well, but had to come in: She said she’d been waiting so long for a hearing on regulating payday lenders.

Her reason: Between the loan fee and the short term of the loan, the APR comes out to between 300 and 1,400 percent, she said.

Watch the hearing live on TVW or at tvw.org. Check back here (and click through below) for updated information throughout the hearing. Check back here (and click through below) for updated information throughout the hearing.

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Tags: payday lending