Payday lending bill killed in Indiana Senate committee

UPDATE: An Indiana Senate committee chairman killed the payday lending bill on Tuesday.

A spokesman for Republican Sen. Mark Messmer said he ruled out giving the bill a hearing in the Commerce and Technology committee which effectively killed the measure.

Previous story below:


INDIANAPOLIS (AP) - The top Republican in the Indiana Senate opposes a payday lending bill that critics say would allow for predatory annual percentage rates as high as 222 percent.

Senate leader David Long of Fort Wayne says he's "not a big fan" of the bill, which cleared the House last month.

Long's remarks come amid a chorus of opposition to it from faith-based groups, including House Speaker Brian Bosma's own church.

It's a felony under state law to offer loans with an annual percentage rate greater than 72 percent.

But an analysis by Indiana Institute for Working Families found the bill would allow for annual percentage rates as high as 222 percent on short-term loans between $605 and $1,500.

Payday lenders say the bill is important because it gives consumers options.

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