OLYMPIA — Payday lenders are pushing Washington lawmakers to change a state law that restricts high-cost loans marketed to poor people.
The Seattle Times reports the state’s payday lenders have lost three-quarters of their business in the five years since a new law took effect. Led by Seattle-based Moneytree, the industry is lobbying lawmakers to alter the law. The lenders support legislation to eliminate traditional two-week payday loans and replace them with “installment loans” that would stretch repayment out for up to a year.
The proposal has drawn bipartisan support and passed committees in both legislative chambers. Backers say it would help the lending business and give people access to more affordable short-term credit.
But consumer-advocacy groups argue the changes would undermine the state’s 2009 reforms and put more people in debt.
