By KPR
Louisville, KY – Following calls for increased regulation, the Kentucky Consumer Advisory Council is reviewing the payday loan industry. Payday loans are often criticized for carrying high interest rates. The council has invited advocates on both sides of the issue to three hearings. The first was held in Louisville Wednesday. The others will be held in Lexington and Newport in the coming weeks. Todd Leatherman directs the Attorney General's Office of Consumer Protection. He says the council may call for more regulation on payday loans after the meetings.
"This is a council that is interested in the industry, interested in hearing the entire story. So we hope to provide a forum where all of the information can be obtained."
Representatives from the payday loan industry declined to attend the meeting, but sent the council a letter. They say their loans are intended to be paid back quickly, and should not be compared to long-term bank loans. Proponents of regulation say payday loans are too often taken out in succession because of high interest rates.