In Oklahoma, deferred deposit loans, better known as payday loans, are advertised as a way for people to get emergency funds for a short-term loan. In practice, these loans prey on low-income borrowers by charging annual interest rates over 350 percent and by creating a cycle of debt that can be nearly impossible to break out of.
HB 1596 would enact sensible reforms to payday lending by limiting borrowers to one outstanding payday loan at a time, requiring a 1-day wait period between loans, and limiting borrowing to a maximum of 90 days over the course of a year.
Where Things Stand (as of 3/3)
HB 1596 was assigned to the House Business, Commerce and Tourism committee. Committee Chair Rep. Elise Hall refused to allow the bill to be heard and it is now dead. HB 1596 or a similar measure could be taken up in 2018. (more…)