Mark Hinton 2-22-18 Weekly Radio Address Podcast

Mark Hinton delivers the weeks weekly radio address podcast:

If consumers are short on cash and credit with nowhere else to turn, isn’t allowing interest rates of up to 222 percent just taking advantage of them in a time of need?

TRANSCRIPT:

Under current Indiana law payday loan rates higher than 72 percent are considered as felony and loansharking.

On Wednesday, January 31st, Indiana House Representatives scrapped up enough votes to pass House Bill 1319. A bill put in place to allow storefront lenders to offer individual’s three to twelve month loans of $605 to $1,5000 with annual percentage rates going up to 222 percent.

House speaker Brian Bosma’s decision to vote was the game changer that allowed this legislation to pass in the House. Now this bill has moved onto the Senate.

Ironically the bill being passed in the Indiana House comes after intense lobbying by payday lenders. Two hired lobbying firms including former Republican lawmakers who were friends with Bosma, which is interesting considering that Bosma typically does not vote on legislation.

Payday loan lenders argue that their loans will help consumers sort on cash and credit who have nowhere else to turn. However, their argument is self-motivated. If consumers are short on cash and credit with nowhere else to turn, isn’t allowing interest rates of up to 222 percent just taking advantage of them in a time of need?

In the past when bills like this one tried to be passed they didn’t pass, but the payday loan industry has built up their lobbying power leading up to this moment. As a community of Hoosiers we should lift each other up and help each other in our times of need. A bill like House Bill 1319 can only hurt Hoosiers in need and creates monstrous profits for the payday loan lenders.