‘Loanshark’ Lending Bill to be Heard in Committee

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The Indiana House Committee on Financial Institutions will consider a bill tomorrow, allowing for higher interest rates on payday loans. Senate Bill 613 would raise rates to levels that are currently considered felony loansharking.

The Indiana State Senate narrowly passed SB 613, last month. It would enable subprime lenders to charge interest rates on loans at levels above what is currently considered felony loan sharking.

The bill, which was authored by Sen. (R-Wabash) Andy Zay and Sen. (R- Jasper) Mark Messmer, passed 26 – 23 in the State Senate. It was referred to the House Committee on Financial Institutions, last month and is set for a first reading tomorrow.