By Dr. Alex Mikulich
Alabama and Louisiana legislatures defeated legislation this session to cap payday loans at 36% annual percentage rate (APR). Alabama also defeated HB 145 to create a state database to enforce existing law limiting borrowers to $500 in payday loan debt.
The people of Louisiana “cry out” for capping payday loans at 36% annual percentage rate (APR), said Representative Ted James (Baton Rouge) in his closing argument for HB239 on April 7, 2014.
Echoing God’s message in Exodus 3: 7-8, “I hear the cry of my people,” Representative James urged his colleagues to hear the cry of the people. He urged his colleagues to take to heart the courageous voices of victims of the payday debt trap who testified about their suffering. Finally, he named many organizations advocating for the 36% APR cap.