Twin Falls Senator Wants Cap on Payday Loan Interest Rates
BOISE, Idaho (AP) — A Magic Valley senator is taking aim at Idaho’s payday loan industry and the high interest rates companies charge customers. Republican Sen. Lee Heider of Twin Falls says a bill he will introduce would cap interest rates at 36 percent and force full transparency of loan terms. Heider announced his plan Monday at a press conference with the Idaho Citizens Action Network.
Heider told the Times-News interest rates on payday loans can inflate to as high as 500 percent. Heider says he was inspired after one of his employees struggled paying back a high interest loan. It’s not the first attempt to regulate the industry. Last year, a Democratic bill to cap interest rates stalled in committee. Idaho caps payday loan amounts at $1,000 but doesn’t regulate interest rates.