A bill that would have expanded what consumer advocates call predatory lending practices died in the Indiana House Monday.
Republicans had argued the bill would have created what they called a “middle option” between payday lending and traditional bank loans, but still with high interest rates. Proponents argued Hoosiers with bad credit have too few options for loans outside of payday lending.
Opponents, such as the Indiana Institute for Working Families, had spoken out against the bill from its inception, and it only narrowly passed the Senate. They argued the interest rates were still too high – rates that, in some cases, would have been allowed to exceed the state’s legal limit of 72%.
When asked to bring his bill up for a third reading Monday, House sponsor Matt Lehman (R-Berne) passed. Because Monday was the deadline for bills on third reading to be voted on, the legislation stops.
Indiana Insitute for Working Families Policy Analyst Erin Macey realeased a statement following ajournment saying, "By declining to call the bill for a vote today, they sided with Hoosier families over out-of-state lenders."
Another bill that would have shrunk the state’s payday lending interest rates by more than 90% died in the Senate right before the session’s halfway point.