Tens of thousands of Kentuckians fall into a debt trap, largely caused by predatory payday lenders. These lenders charge over 390 percent interest on loans that their customers find difficulty repaying. The Department of Defense appealed to Congress to establish a rate cap of 36 percent on these loans because military families were suffering under this debt. DOD called it a threat to “national security.”
Recently, our neighboring state of Ohio passed a rate cap of 28 percent after a 3 ½-year battle with the payday loan industry. It is Kentucky’s turn. Call your legislators and tell them to cap payday loans at 36 percent. Our families are suffering enough during this economic downturn. This will give them a well-deserved break.