A payday lending bill in Idaho, designed to dictate how much payday lenders can give borrowers, won passage in the state's House of Representatives on Monday by the slimmest of margins. The bill limits loan size and allows borrowers to set up interest-free payment plans if they hit a financial snag.
The 35-34 decision came after several lawmakers said they found the scope of the bill troublesome. Rep. Phylis King, D-Boise, said letting borrowers take out loans of up to 25 percent of their monthly income is still too much.
She suggested an amount closer to 5 percent. Others expressed concerns that people seeking loans could circumvent the parameters by visiting several payday lenders in one day.
But proponents argued it will help borrowers when unexpected financial problems prevent them from returning money.
Idaho Gov. C.L. Butch Otter will decide whether to sign the measure into law. A timeline for that has not been determined.