House committee passes bill restricting payday loan industry

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5/ 6/2002: Radio Story - The Pay Day Loan reform bill made it through both houses with no changes Monday afternoon.

Intro:	The payday loan industry faces restrictions after a House committee passed a bill Wednesday.
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Wrap: The House Financial Institutions Committee passed a bill that would change payday loan laws.

The bill has consumer protections, but doesn't limit the industry enough to eliminate it.

Committee Chairman Don Wells used to operate a payday loan business.

He says many of his constituents need these loan services.

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Description: I'm not talking about just the poorest of the poor. I have school teachers who use them, state workers - anyone who has too much month left at the end of the money.

Payday loans are short-term loans under 500 dollars.

The bill is set to go to the House Rules Committee for a vote.

From the state Capitol, I'm Danielle McCarthy.

Intro:	One state representative says she expects the payday loan industry to take a dive under a bill created to protect consumers.
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Wrap: Faced with two bills protecting consumers by restricting the payday loan industry, the House Financial Institutions Committee chose the less limiting one.

Republican Representative Ellen Brandom is sponsoring the bill created in a bipartisan committee.

She says the bill won't eliminate the payday loan industry, but it will have an effect.

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Description: There's no question that this will have some detrimental effect to some payday loan companies. It's going to cost them some money.

The bill is set to go to the House Rules Committee for a vote.

From the state Capitol, I'm Danielle McCarthy.

Intro:	A House committee opted for the less restrictive of two bills that would change payday loan laws.
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Wrap: The House Financial Institution Committee killed a bill that would severely crack down on the payday loan industry.

Mary Still was sponsoring the bill.

Committee Chairman Don Wells says Still's goal is to eliminate the payday loan industry.

But Still says her main goal is to protect consumers.

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Description: Never in the history of our country have we allowed usury at this rate. Al Capone would be embarrassed by this.

A bipartisan committee created the less restrictive bill.

The bill's sponsor Ellen Brandom says it protects consumers without eliminating the industry.

The House Rules Committee will vote on the bill next.

From the state Capitol, I'm Danielle McCarthy.