Why RI Needs Payday Lending Reform

Why RI Needs Payday Lending Reform

First, a disclosure: as an element of a course I’m using, I’m involved in Rhode Island Payday Lending Reform, the coalition whose cause we discuss below.

Pay day loans are an easy method for those who require cash, and don’t have access to banking that is traditional, to have that loan quickly. Frequently, a debtor will bring in a paystub, and get a short-term advance loan this is certainly allowed to be paid back because of the borrower’s next payday. Interest levels on these loans usually are extraordinarily high. In Rhode Island, the utmost rate of interest is 260%.

RI Payday Lending Reform press seminar, RI State home (picture by author)

The other day, people in the RI Payday Lending Reform coalition held a press seminar within the State House to advocate for legislation presently into the RI home and Senate that could cap interest levels for those loans at 36%. Read more