Lawmakers are moving to rein in payday loan companies. Assemblywoman Barbara Buckley says that by offering high-interest, short-term loans the companies prey on the working poor.
Interest and fees on small loan can reach as much as ten times the amount of the loan.
Default cases now make up 40 percent of the cases in Carson City's small claims court.
Buckley's proposal would limit the type and amount of fees loan companies can collect from the debtor.
Industry groups say their loan fill a hole in the market. They say their serve middle-class customers who are happy with their service.
Lawmakers are also considering legislation, backed by Assemblywoman Chris Giunchigliani, that imposes tighter regulations on industry.
(Copyright 2005 by The Associated Press. All Rights Reserved.)
