Kentucky currently has 743 payday loan stores. Kentucky Gov. Steve Beshear wants legislators to cap the rates at 36%.
Kentucky current loan terms are:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Maximum Number of Outstanding Loans at One Time: Two ($500 aggregate loans outstanding to all licensees)
Not every state is giving payday lenders a hard time. Kentucky granted a moratorium to payday lenders on house bill 444.
Every state has its own unique way of dealing with issues. The legislators in Kentucky probably feel that people choose to use the product. They do not need eliminate it.
The more I think about it, it makes more sense. If you don’t like the product, don’t use it and tell your friends not to use it. Stop the economic morality card.