Payday Loan Bill Would Help Borrowers In A Bind - Spokane, North Idaho News & Weather KHQ.com

Payday Loan Bill Would Help Borrowers In A Bind

BOISE, Idaho (AP) - A bill aimed at creating a little breathing room for payday loan borrowers who get in a bind is headed for a full hearing.
    
The proposal, sponsored by Twin Falls Republican Sen. Lee Heider, would create another option for borrowers.
    
They could set up a payment plan if they don't have enough money to pay the lenders back in one lump sum, splitting the amount into four payments instead.
    
Lenders would be blocked from tacking interest and fees onto the remaining balance.
    
While not intended to be used with every loan, Heider said in the Senate Commerce and Human Resources committee Thursday, payment plans could provide relief for borrowers unexpectedly short of cash.
    
His bill also limits the amount loan seekers can get to 25 percent of their monthly income.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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