The House Committee on Business and Financial Services approved a bill backed by Seattle-based payday lender Moneytree today. The vote: 13-to-2.
Senate Bill 5312 would allow lenders to make loans of up to $1,500 with effective interest rates nearing 200 percent and repayment periods stretching from six months to a year.
Currently, payday lenders can lend up to $700. Those loans — which can have effective interest rates of up to 391 percent — must be repaid with one balloon payment on the borrower’s next payday.