Editorial: Closing a gap
Monday, May 14, 2007 | 7:06 a.m.
In 2005 the Nevada Legislature passed a law that brought long overdue regulations to the state's previously unregulated high-interest payday loan industry.
The law, enacted shortly after a series of in-depth stories by the Las Vegas Sun in March 2005, prohibits triple-digit interest rates and prevents lenders from suing defaulted customers for three times the amounts they borrow. It also bars lenders from refinancing unpaid loans at higher interest rates and limits the amount a customer receives based on his income.
But even with these safeguards, there remains a loophole.
Currently, businesses that offer their high-interest loans on an installment plan and don't accept postdated checks from consumers aren't defined as payday lenders under the 2005 law. So they can basically continue charging interest rates up to 900 percent, Assembly Speaker Barbara Buckley, D-Las Vegas, told members of the Senate Commerce and Labor Committee on Thursday.
Buckley, who is pushing for legislation to close the loophole, said including all short-term or payday-type lenders isn't about creating "fair competition"; she said this is about stopping lenders who are "putting people on a cycle of debt that they never get off." She displayed one lender contract in which a customer was required to pay $1,602.60 on a year-old $200 loan.
Companies have a right to collect interest on their loans, but none should be allowed to charge outrageously high rates. About 500 of the state's payday lenders manage to obey the 2005 law. It is time to close the loophole and force all such businesses to play by the same rules.
archive
- Most Read
- Discussed
- Most E-mailed
- Sarah Palin wasn’t a disaster, but Obama is
- CityCenter’s Mandarin Oriental makes Vegas debut
- Kimbo Slice not enjoying cutting weight for first time
- As national jobless rate improves, LV sees signs of trouble
- Pacquiao-Mayweather fight on, March date likely
- Kruger may soon seek more disciplined shot selection
- Del Sol seeks upset against powerhouse Bishop Gorman
- Sub-freezing temperatures hit Las Vegas
- Court upholds sex conviction for Las Vegas magician
- UNLV president denies reports of Livengood as new AD
Blogs
The Kats Report
Kirk Kerkorian: CityCenter is 'simply the most amazing' Vegas project ever (1 Comment)
Robin Leach's Las Vegas Celebrity Watch
Great Santa Run: Unofficial 14,595 runners would be a new record
Elsewhere
Rampage Jackson to return to UFC (3 Comments)
Politics: Ralston's Flash
Superintendents want state to immediately seek Race to Top funds
Top Chef: Las Vegas
The Jet Stream: The great Jennifer debate (2 Comments)
The Kats Report
From Eva Longoria Parker to a cluster of execs, crowd takes a shine to Crystals (4 Comments)
Elsewhere
Harry Reid's recipe for getting health-care deal done (10 Comments)
Calendar »
- 5 Sat
- 6 Sun
- 7 Mon
- 8 Tue
- 9 Wed
-
Chickenfoot at The Joint
The Joint | 8 p.m. to 11:59 p.m.
-
The Ultimate Fighter 10 Finale at the Pearl
The Pearl at the Palms | 4 p.m. to 10 p.m.
-
Great Santa Run at Town Square
Town Square | 8 a.m. to 10 a.m.
-
Willie Nelson at Planet Hollywood Theatre for the Performing Arts
Planet Hollywood Resort and Casino | 9 p.m. to 11:59 p.m.
-
Cash'd Out at Aliante Station
Aliante Station Casino and Hotel | 9 p.m. to 11:59 p.m.
-
Brooks & Dunn at the Hilton
Las Vegas Hilton
-
Ron White performs at the Mirage
Terry Fator Theatre
The Sun
Locally owned and independent for more than 50 years.
Technorati












