***H.R. 2871 The Payday Loan Reform Act of 2007

For any of you, like myself, who are interested in putting a halt to the predatory lending practices of payday lenders, the above bill needs your support. It is still in the development stages and the agency representing the payday lenders has already spent hundreds of thousands of dollars lobbying against it. I urge you to write/email/call your representatives in support of this bill. You can google "H.R. 2871" and read about its progress. It is not likely that it will pass as a stand alone bill but might get through as part of a larger bill. There are people on our side and we must let them know that we support them! Goudah, you are great for digging info and I am sure you will have much to add.

Yes! Everyone needs to write to their state reps in support of this bill!

Its intent?

Way to go girl!

You found it! I was just adding the info to your post!

Thats the whole bill. I sent an email to my Senator Martinez! I will get Bill Nelson on tomorrow's lunch break!

I'm typing and searching as we speak!!!!

wow, could this finally be the end to all of the payday loans?

Morningstar - The whole bill is posted above . . .

Here's the problem --- this Act defines a payday loan as being a short-term cash advance in exchange for either a post-dated check or ACH authorization. But this act does not define "short term."

Here's the problem we have in Illinois. Our IL Payday Loan Reform Act in 2005 tried to define a payday loan as being any loan of 120 days or less that is over 36% apr. So what did the payday stores start doing -- they came out with their so-called "installment loans" that were for 130-days. Because they weren't 120 days or less, they didn't fit the definition of a PDL and so they don't have to follow the new laws.

This bill definitely needs some better languange in it -- otherwise you will find yourself signing 130-day 500% loans instead of 14-day 500% loans.

Very true . . . .

Unfortunatly, I would guess that no matter what law they put in place, there will always be some way to get around them.

The lobby is so powerful that this law will probably get watered down if it passes. That is why we should write! The legitimate storefronts such as Amscot and Ace Cash stand to lose a lot here so they will fight tooth and nail!

I so doubt it will pass too . . . . A lot of banks now offer "cash advances" on your direct deposit, and they would fight to keep that revenue stream too.

Where exactly is this bill in the pipeline? Is it still in committee? And if so, what committee? And if prelim talks are starting here, then Debtcruncher is exactly right--better language IS needed and things need to be spelled out.
Let's also spell out what kinds of advances we are talking about here. Are we speaking of PDL's taken out at just storefronts? Where does that lead the IPDL's, who are going to say they aren't bound by the laws anyway, especially the offshore ones?
Would direct deposit advances be covered?
And any regulation is better than what we have now, which is zip, so I will email Ellen Tauscher, my congressperson, to tell her get behind it.

Bill Status

Sponsor: Rep. Tom Udall [D-NM]show cosponsors (3)
Cosponsors [as of 2007-08-26]
Rep. Keith Ellison [D-MN]
Rep. Luis Gutiérrez [D-IL]
Rep. Janice Schakowsky [D-IL]
Cosponsorship information sometimes is out of date. Why?
Bill Text: - Full Text
Status: Introduced - Jun 26, 2007
Scheduled for Debate -
Voted on in House -
Voted on in Senate -
Signed by President -

This bill is in the first step in the legislative process. Introduced bills go first to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills never make it out of committee.

Last Action: Jun 26, 2007: Referred to the House Committee on Financial Services.

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Committee Assignments

This bill is in the first stage of the legislative process where the bill is considered in committee and may undergo significant changes in markup sessions. The bill has been referred to the following committees:

House Financial Services