Nevada lawmakers considered a bill Monday that aims to curb predatory short-term lending by better disclosing the rates and risks of payday loans.
Republican Sen. Michael Roberson is sponsoring SB242, which would enact the Payday Lender Best Practices Act. The bill garnered wide support at the hearing, including from representatives of payday and car title loan businesses.
"We think this is good for the industry," said Alfredo Alonso, lobbyist for payday loan industry trade group Community Financial Services Association. "Obviously there's been a lot of talk about some of the abuses in the industry and we hope this fixes some of those problems."
The bill would require lenders to disclose fees and interest on a loan in both dollars and annual percentage rate before a borrower signs it.
The measure also requires payday loan advertisements in print, on TV or on the Internet to tell consumers that their products should only be used as a short-term financial solution.
Republican Sen. Becky Harris raised concerns about a provision that would limit payday loan rollovers, which are the equivalent of paying the minimum on a credit card bill and delaying the due date. The measure would prevent further rollovers after 90 days.
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