Legislature discuss payday loans - KNOE 8 News; KNOE-TV; KNOE.com |

Legislature discuss payday loans

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MONROE, La. (KNOE 8 News)- Legislators discussed a bill that would limit the amount of times an individual can take out loans from a payday lender within a years period.

This after a bill that suggested interest rates be capped at 36% was shot down. Senator Ben Nevers of Bogalusa is the author of both bills.

ULM economist Robert Eisenstadt says limiting the amount of loans taken out won't solve the problem of payday lending.

Representative Erich Ponti of Baton Rouge opposes a bill that will limit loans. Ponti believes that won't help borrowers avoid late charges.

Which Eisenstadt believes contributes to the debt cycle.

Eisenstadt says due to the high interest rates people will find them selves even more wrapped in debt. That's why he suggests that payday loans be the last resort for funds and you should be aware of what comes with taking out a payday loan.

This piece of legislation is pending approval of the senate finance committee.
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