SEATTLE (AP) — after having a law that is new stricter laws regarding the payday financing industry takes effect today, Ken Weaver is certainly not positive his two check-cashing stores in eastern Washington will stay available.
The brand new legislation limits the dimensions of a quick payday loan to 30 % of an individual’s month-to-month income, or $700, whichever is less. It bars folks from having numerous loans from different lenders, limits how many loans an individual can take off to eight per one year, and creates a database to track how many loans removed by individuals.
“we think it is going to affect (them) pretty significantly,” stated Weaver, whoever Apple Valley Check Cashing shops come in Moses Lake and Wenatchee. “we do not understand if we are gonna likely be operational in half a year.”
The limitation as to how numerous loans individuals will manage to sign up for is really what will cut into their shops’ income, Weaver stated, echoing one of many arguments from the payday industry on what the brand new legislation will cut into its business design. Continue reading