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KY Lawmaker Targets Payday Lenders

By Tony McVeigh

Frankfort, KY – Mary Love is an ordained minister in Oldham County. She's 65, retired and living on a fixed income. Strapped for cash one year, she paid a payday lender $60 per month to keep floating a $400 loan. She says it was nothing but a debt trap.

"I was sinking farther and farther into debt and knew that I had to do something to break out of it. Altogether, I paid about $1,450 dollars in fees on a loan of $400."

Louisville Rep. Darryl Owens says stories like Love's is why he's sponsoring legislation capping payday loans at 36% annual interest. In two previous sessions, the bill went nowhere. Owens expects to at least get a House committee hearing this year, but knows he faces strong opposition from payday lenders.