Payday lending bill wins approval as session winds down

Kelley-worked compromise gets consumer protections to governor

April 23, 2009

OLYMPIA – Last-minute negotiations succeeded in getting payday lending protections through the Legislature on Wednesday. Rep. Troy Kelley, D-Tacoma, has worked the issue for three years and believes this will bring a better balance for people using payday loans.

“In this age of ineffective government oversight, this piece of legislation is a major step toward consumer protection,” Kelley said. “The new law will preserve options for consumers and the economic health of our small businesses, while weeding out the worst violators of the public trust.”

Under House Bill 1709, the number of loans a person can take out in a year will be capped at eight. The loan amount is now capped at a percentage of the person’s gross income, and there is a payment plan that is easy to enter into for people borrowing.

“We are targeting those who employ deceptive practices to turn a quick buck at the expense of families often in desperate situations,” Kelley said. “These are common-sense moves that should have been passed years ago.”

Kelley believes the bill strikes the right balance between payday lenders and the people they serve. He also cited the backgrounds of the key players as critical in pushing the bill out. Rep. Sharon Nelson, D-Maury Island, is the prime sponsor and works with consumer advocates. Rep. Steve Kirby, D-Tacoma, is the chair of the House committee dealing with payday lending, and Kelley brought his background with the military. Payday lenders have been especially active in communities near military bases.

The bill now heads to the governor for consideration.

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For more information
State Rep. Troy Kelley, (360) 786-7890
Print-quality image: www1.leg.wa.gov/documents/house/members/photos/Kelley.jpg

Staff contact - Andrew Dziedzic, (360) 786-7218

Bill information
HB 1709: http://apps.leg.wa.gov/billinfo/Summary.aspx?bill=1709&year=2009