Pay day loan law takes impact in Washington state

Pay day loan law takes impact in Washington state

SEATTLE (AP) — following a brand new legislation imposing stricter laws in the payday financing industry takes impact today, Ken Weaver just isn’t positive their two check-cashing stores in eastern Washington will continue to be available.

The law that is new the dimensions of a quick payday loan to 30 % of an individual’s monthly earnings, or $700, whichever is less. It bars individuals from having numerous loans from various loan providers, limits the amount of loans an individual may simply simply take away to eight per year, and creates a database to trace how many loans removed by individuals.

“we think it is going to affect (them) pretty dramatically,” stated Weaver, whoever Apple Valley Check Cashing shops have been in Moses Lake and Wenatchee. “we do not understand if we are gonna most probably in half a year.”

The restriction as to how numerous loans individuals will have the ability to sign up for is really what will cut into their shops’ income, Weaver stated, echoing among the arguments from the payday industry as to how the brand new legislation will cut into its business design.