INDIANAPOLIS PAYDAY LOAN LAWS
An Indiana Senate committee rejected proposed changes to a financial industry bill.
The Senate's Insurance and Financial Institutions Committee voted 6-2 to defeat an amendment that would have allowed payday lenders to offer six-month loans of up to $1,000 at an annual percentage rate of 180 percent. Current state law caps interest rates at 36 percent for installment loans under $2,000.
After rejecting the amendment, the panel unanimously approved the bill's existing language calling for a legislative committee to study lending issues over the summer. Committee chairman Sen. Travis Holdman, R-Markle, said after the hearing that lawmakers "need to stand back and take a look at this."
Jabo Covert, a vice president of Check Into Cash, had urged the panel to approve the amendment, saying the payday loan industry expects the Consumer Financial Protection Bureau to soon issue "very stringent regulations" targeting the industry. He said those new rules could prohibit his company, which has 66 outlets in Indiana, from making most of the loans it currently makes in the state.Read more here: http://www.newsobserver.com/news/business/article62436512.html#storylink=cpy
Indiana has specific payday advance laws. 15% on the first $250; 13% on amounts greater than $250 up to and including $400; 10% on amounts greater than $400 up to and including $500.
Minimum term of 14 days. Maximum amount of payday loan is $500 but cannot exceed 15% of the monthly gross income, including fees. Rollovers are prohibited (if a loan is paid in full, it is not a rollover.
For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to Payday and Paycheck Loans.com
Indiana Payday Loan Laws & Legislation State Information
Legal Status: Legal