Governor Gregoire Signs Payday Lending Bill!!

Congratulations! HB 1709 was signed into law on Friday, May 15th. The new law will go into affect on January 1, 2010. A national expert on payday lending estimated that is new law could save Washington consumers $100 million a year! After four long years of fighting, this is an amazing victory that paves the way for further consumer protections from predatory payday lending.

Highlights of the bill include:

• A repayment plan that you can enter at anytime that gives you 90 days to pay back if it is under $400, if it is over $400 you get 180 days
• Limits the size of a payday loan to 30 percent of a person's monthly income, or $700, whichever is less
• Only one loan per person out at a time from any lender, and sets up a database to help lenders keep track
• A lender can not lend an individual more then eight loans in any twelve-month period
• To see the bill in full visit: http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/House%20Passed%20Legislature/1709-S.PL.pdf

Click here to read the article in the Seattle Times.

Your calls, emails and actions show that by joining together we can achieve great victories in the fight for economic justice. As constituents, our power is our voice. Unlike payday lenders, we do not have access to billions of dollars to fight for our cause. What we have on our side is the undeniable truth that no one in our communities should be forced to pay outrageous amounts for a small loan to help them through a crisis.

---