PROVIDENCE, R.I. (AP) -- Payday loan businesses would have to cap the interest they charge at 36 percent under a proposal heading for legislative review in Rhode Island.
A Senate committee is expected to hold a hearing on the legislation Tuesday.
The authors of the bill say payday loans now come with annual interest rates of up to 260 percent and can trap low-income individuals in a cycle of debt.
Payday lenders, however, say the bill would force them to close and eliminate a useful financial product.
A similar bill is pending in the House. No votes on the legislation have been scheduled.
Similar bills have failed in recent years.
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- Payday loan