Louisiana legislators on Wednesday advanced a proposal to limit the number of payday loans a borrower can take out each year, despite arguments that it will force storefront lenders to shut down.

The state's Senate Finance Committee approved the proposal by Sen. Ben Nevers to put a cap of 10 payday loans per year per borrower. Payday lenders would be required to record transactions in a database to ensure the cap. The bill now moves to the full Louisiana Senate for consideration.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.