Lawmakers desire to improve fines for rogue payday loan providers by 500 per cent

By John Cheves | Lexington Herald-Leader

FRANKFORT – A few Kentucky lawmakers want pay day loan shops to face much weightier penalties whenever they violate consumer-protection law.

Senate Bill 169 and home Bill 321 would increase the number of fines open to the Kentucky Department of banking institutions through the present $1,000 to $5,000 for every single payday financing breach to between $5,000 and $25,000.

State Sen. Alice Forgy Kerr, R-Lexington, stated she ended up being upset final July to learn when you look at the Herald-Leader that Kentucky regulators permitted the five largest loan that is payday to amass hundreds of violations and spend scarcely a lot more than the $1,000 minimum fine each and every time, and regulators never revoked a shop permit.

No body appears to be stopping cash advance shops from bankrupting their borrowers with financial obligation beyond the appropriate restrictions, Kerr stated.

The lenders are supposed to use a state database to be certain that no borrower has more than two loans or $500 out at any given time under state law. Continue Reading