RANCHO CUCAMONGA, Calif., April 24, 2013 /PRNewswire/ -- Politicians and consumer advocate groups have cracked down on payday lending over the last several years, but only 12 states and the District of Columbia have completely banned payday loans.
Loans.org's recent infographic compiled the legislation that ended short-term loans in Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia and Washington D.C.
In some states, payday lending has been illegal for decades. A section of Connecticut's Bank Laws capped interest rates at 12 percent in 1949. In New York interest rates were limited to 16 percent in 1976 – anyone found charging over 25 percent interest in that state could face up to 15 years in prison.
Other states, such as West Virginia, have made short-term lending so unprofitable that lenders were essentially driven out of the state.
At the same time, payday lobbyists are making strides. In February of 2013, Senator Jerry Tillman introduced Senate Bill 89 in North Carolina in an effort to legalize payday lending in the state. In California, where payday lending is still legal, a bill to limit lending and set standards for checking a borrower's ability to repay a loan was rejected in a 5-3 vote on April 17.
To view the infographic , please visit http://loans.org/payday/infographics/statewide-short-term-lending-bans
For more information on payday loans please visit http://loans.org/payday
Loans.org is a leading lending authority website that covers financial news, produces informative articles, and answers frequently asked questions. In addition to providing lending-related information, loans.org also hosts a variety of free online application forms for prospective borrowers to use when applying for loans.
SOURCE Loans Org, LLC