payday loans

Indiana is one of 25 states without strong rate caps on payday loans. This means lenders can have annual percentage rates as high as 391 percent.

Hoosiers for Responsible Lending is a coalition of veterans organizations, faith communities, consumer groups and social service providers.

The "Bridge the Gap" loan program works to create better financial literacy and help pull residents out of poverty.

A Senate committee revamped a bill that caps interest rates on many types of consumer credit after pushback from advocates and several lawmakers. However, with the changes, some committee members still feel the bill doesn't go far enough.

A bill that would have expanded what consumer advocates call predatory lending practices died in the Indiana House Monday.

The House Financial Institutions Committee took no public comment on the bill, which changes rules for high-interest, short-term loans.

A bill to cap Indianas rate at 36 percent failed in the first half of the legislative session. Another bill, allowing different types of high-interest loans, passed out of the Indiana Senate.

A coalition of veterans, church leaders and advocacy groups gathered at the Statehouse Monday to oppose legislation that would expand subprime lending in Indiana.

If passed, fees charged to users would shrink by more than 90 percent. Several states have passed similar laws and in 2006, then-President George W. Bush enacted a 36 percent cap that applies to active-duty military members.

The bill would create a new type of payday loan that would have allowed for annual percentage rates of up to 222 percent.