Economy

Report: Payday lending fees damage urban, rural areas in Kentucky

FRANKFORT — A new report by a coalition pushing for caps on payday loans shows that Kentuckians are paying millions of dollars in fees to payday lenders in both urban and rural areas.

The report — by the Kentucky Coalition for Responsible Lending — was released Tuesday on the same day as a rally at the Capitol to support House Bill 381. That bill would place a 36 percent rate cap on all interest rates and fees for small, short-term loans, commonly called payday loans.

Some of the findings of the study include:

Louisville has 132 payday lenders who collected $27 million in predatory fees in 2008.

Conversely, in Mason County, which has a population of less than 10,000 people, there are eight payday lenders that collected $1.6 million in predatory fees in 2008.

The study defines predatory fees as those people who have had to pay fees because they have more than five payday loans, the study found.

Most of the lenders in Kentucky are nationally owned.

Read the complete story at bluegrasspolitics.bloginky.com at kentucky.com

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