Pay day loan law takes impact in Washington state

Pay day loan law takes impact in Washington state

SEATTLE (AP) — After a brand new legislation imposing stricter laws from the payday financing industry takes impact today, Ken Weaver isn’t positive their two check-cashing stores in eastern Washington will continue to be open.

The brand new legislation limits how big is a quick payday loan to 30 % of an individual’s month-to-month earnings, or $700, whichever is less. In addition it bars individuals from having numerous loans from various lenders, limits how many loans an individual may simply just simply take off to eight per one year, and creates a database to trace how many loans applied for by people.

“we think it is going to affect (them) pretty significantly,” stated Weaver, whoever Apple Valley Check Cashing shops have been in Moses Lake and Wenatchee. “we do not understand if we are gonna most probably in half a year.”

The limitation on exactly how numerous loans people will manage to sign up for is really what will cut into their shops’ income, Weaver stated, echoing one of several arguments from the payday industry on what the law that is new cut into its business design. Continue reading “Pay day loan law takes impact in Washington state”