Kansans Protests Payday Loan Interest
TOPEKA, Kansas (WIBW) – The Kansans band together on Monday to protest the high interest rate on payday loans.
Topeka JUMP said Kansas residents have come together to urge lawmakers to pass payday loan and auto title reform. He said that currently Kansas law allows payday and car title lenders to charge interest rates of up to 391% and state regulations allow a debt of $ 300 to become a debt. $ 750 in about five months, which can hurt family finances.
âKansas law fails Kansans. This type of loan causes deep anxiety and suffering. Jesus said blessed are the peacemakers. We call on lawmakers to unite across party lines to pass morally sound loan regulations that will restore peace. It is high time to fix this problem. The states of Ohio and Virginia have shown us how and the Episcopal Diocese of Kansas is supporting the passage of similar payday loan reform law, âsaid Cathleen Chittenden Bascom, Episcopal Bishop of Kansas.
According to Topeka JUMP, the coalition will sponsor HB 2189 and SB 218, which would cap interest rates and fees at 36% to end the cycle of debt for Kansas families. He said the bill would allow residents to repay small loans on affordable installment plans over the course of a few months, while retaining the ability to repay the loan in full. He said the bill would also limit loan repayment amounts to a maximum of 5% of a borrower’s salary.
Topeka JUMP said HB 2189 will be heard on Monday, February 22 at 9 a.m. before the House Committee on Financial Institutions and Rural Development. He said President Jim Kelly wanted more deliberations on the bill, which would push him to the next session. However, he said that every day Kansans waits, borrowers pay 391% interest on loans. He said delaying this kind of economic relief amid the COVID-19 pandemic would be unethical.
Topeka JUMP said he is inviting all Kansans to join him at 801 SW Topeka Blvd. at 11 a.m. on Monday, February 22, to protest the high interest rates on payday loans. He said participants will be required to wear a mask and socially distance themselves.
The organization said it is calling on President Jim Kelly to represent the needs of his district, his religious community and the state of Kansas, allowing the bill to be “blessed” by the Speaker of the House. so that it can work past the February 26 deadline and more time to get the bill passed in the current session.
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