The New York Times' Michael Corkery reports that legislators in at least eight states have "voted to increase the fees or the interest rates that lenders can charge on certain personal loans used by millions of borrowers with subpar credit." There has been a lobbying push by the consumer loan industry, which argues that caps on interest rates have not kept pace with the costs of doing business. Efforts in North Carolina initially failed because of opposition from military leaders, but the industry was able to get the law amended when the commanding officers changed at some of the state's military bases and did not feel as strongly about the issue. The law changed from allowing lenders to charge 30 percent interest on loans up to $1,000 and 18 percent on a remaining balance of $6,500 to charging up to 30 percent on loans up to $4,000 and 24 percent on a remaining balance of $4,000.
Lawyer and Legal Journalist
