Nevada lawmakers reviewed a bill Monday to curb predatory short-term lending by better disclosing the rates and risks of payday loans.
Lenders would be required to disclose fees and interest on loans in both dollars and annual percentage rates before a borrower signs it. The measure also would require 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 option.
Republican Sen. Michael Roberson is sponsoring the bill. It gained wide support at Monday's hearing, including from representatives of payday and car title loan businesses.
The bill had much stronger support than another payday loan bill discussed last month. The earlier measure would allow payday lenders to sue borrowers for unpaid debt and drew sharp criticism from Democrats who said it would prey on people already struggling to pay back high-interest loans.
Alfredo Alonso, a lobbyist for payday loan industry trade group Community Financial Services Association, said the organization believes the new bill would be good for the industry considering the widespread discussion of alleged abuses in the industry. Alonso hopes the bill would fix those problems and alleviate concerns.
Republican Sen. Becky Harris raised concerns about a provision to limit payday loan rollovers - meaning paying the minimum on a credit card bill and delaying the due date. The measure would prevent further rollovers after 90 days and Harris voiced concerns that financially strapped borrowers might not be able to pay within 90 days.