from Kentucky Public Radio’s Tony McVeigh
An online, real-time, database to track payday loans in Kentucky is now operational, two months ahead of schedule.
Legislation capping annual interest rates on payday loans at 36-percent failed to emerge from the 2010 session. The industry argued it was punitive, since a database to track payday loans hadn’t been given a chance to work.
The database is now online, and Nicole Biddle with the Department of Financial Institutions says it will track how many payday loans a consumer has.
“Licensees will be online and they will input the consumer’s information and they will be told whether they are eligible or not,” says Biddle.
State law limits customers to two payday loans at a time, totaling $500. With the database, customers who exceed the limit won’t be able to receive a new payday loan until they pay off prior loans.