Wash. Legislature approves payday lending rules - Spokane, North Idaho News & Weather KHQ.com

Wash. Legislature approves payday lending rules

OLYMPIA, Wash. - After two close votes, the Washington state Legislature has approved a bill to impose tighter regulations on the payday lending industry.

The measure proposes limiting the size of a payday loan to 30 percent of a person's monthly income or $700, whichever is less; barring people from having multiple loans at different payday companies; and setting up a database to track the number of loans taken out by individuals.

Last week, senators voted to strip a House bill of regulations that proponents had described as a compromise between the payday lending industry and consumer advocates. The House rejected the Senate's amendment and asked the upper chamber to drop the changes.

On Wednesday, the Senate rejected the House's request on a 25-24 vote, sending it back to the lower chamber.

Just a few minutes later, in a surprise move, the House sent the bill back to the Senate. After some political maneuvering, senators stripped their own amendment and approved the House version of the bill on a 26-23 vote.

The bill now heads to Gov. Chris Gregoire, who will decide whether to sign it into law.

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