Posted: Apr 30, 2010 5:20 PM
The Senate has passed tighter limits on payday lenders, which opponents say will drive the industry out of business.
The bill passed by just one vote Friday and now heads back to the House, which is expected to re-approve the latest version of the bill. It would require lenders to make loans for six months at a time and to give borrowers the flexibility to repay earlier. It's aimed at preventing borrowers from paying fee upon fee to roll over short-term loans.
Under the bill, lenders would be able to charge a $75 origination fee as well as monthly fees up to $30 and up to 45 percent annual interest.