Hamilton opposes HB1319 (2018): Small loans and unsecured consumer installment loans (Payday lending)

HB1319 was a highly controversial bill to legalize installment lending up to 222% APR. Currently, lenders can offer installment loans only if they remain under Indiana's criminal loan sharking law, which caps fees and interest at 72% APR. This new bill would allow payday lenders to offer larger, longer-term loans at up to 222% APR. Under current law, a typical payday borrower making $16,000 qualifies for a two-week payday loan of $266 and if they take 8-10 loans in a row, they would pay about $400 in fees. Under this new bill, a borrower making $16,000 per year could qualify for a one-year loan of $1500 and pay nearly $1600 in fees.