Many bills pass through state and national legislators on a weekly basis, but few of them are as heavily contested as the recent Idaho contest in the house of representatives. The bill has many opponents, but it managed to pass 35 to 34 in the most recent contest.
The bill itself is an interesting piece of legislation that once again puts questions into play about the quality of payday lending in the United States. Each state is trying to deal with the payday loan industry in different ways and it is important to keep up the pressure to come up with something that benefits everyone involved.
Idaho’s Payday Loan Bill
The new payday loan bill does a few things for common people who are trying to get payday loans. First of all, it will limit the size and allows borrowers to get interest-free payment plans as well. There are many problems with the bill as many legislators have openly voiced. For one thing, having an interest free payment plan is wildly hard to regulate. Those who are able to receive them are not always accepted and many applicants that should be rejected are not.
Overall, there are also issues with the way that interest rates are capped with the bill. People who are trying to make a living running a payday loan company will have a much harder time making that happen with the new caps on the payday loan amounts. Making sure that there are no high fees will make it hard for payday lending companies to operate at all.
What This Means for States
This means a few things for the people who are trying to incorporate new laws into the state legislation. Most people who are trying to incorporate these laws across the country are looking to other states to see what might happen as a result. For states that are looking at Idaho, they are seeing how unfortunate it might be to have these caps as real laws.
The people are obviously crying for support when it comes to getting payday lending capped, but that doesn’t mean that everyone is so happy. Many people feel betrayed in the business world because a fundamental freedom has been taken away. Given the situation, it is easy to see how the effects might be felt in many states around Idaho and the nation as well.
States will be skeptical about all kinds of payday lending options, but there are few real choices in many cases. State legislation has not fully passed in Idaho, but the fact that the House has allowed this bill to pass may give some indication about the future of payday lending in the country.
As more people get into this type of debt, there are going to be higher regulations a well. Nonetheless, it is important to consider the different issues related to payday lending that might alter your own interest in getting this type of loan.
