During the 2008 and 2009 legislative sessions, Governor Steve Beshear pushed legislation to limit payday loan company excesses, including a cap on interest rate of 36 %. That, despite the fact that during the 1990s, when he was in a private law practice, Beshear lobbied for payday loan companies on legislation in Frankfort. So when this fall, a fundraiser for Behear was hosted by one payday lender company executive, speculation began that Behear might be about to back off his position on payday loan reform.
The Courier-Journal reports that Beshear is still pushing for the payday loan reform
Gov. Steve Beshear Tuesday announced his support for a 36 percent annual cap on the interest that Kentucky’s payday lenders may charge consumers for the short-term, high-cost cash loans.
“Thousands of Kentuckians who have fallen on hard, economic times are trying to find short-term means by which they can put food on the table for their families,” Beshear said. “A rate cap would be a strong protective measure we can take on behalf of consumers.”
A coalition of religious leaders and consumer advocates last week called on the 2010 General Assembly to pass a law limiting payday lenders to the 36 percent cap Congress imposed in 2007 on payday loans for military personnel.
Members of the group called Coalition for Responsible Lending said they are seeking a sponsor for the measure, which failed in last year’s legislature after payday lenders fought it.
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