New Law Tightening Rules on Loan Service Companies
A new law is tightening the rules on loan service companies or pay day loan services.
A new law is tightening the rules on loan service companies or pay day loan services. We spoke with a store here in Reno though and they say they were already following these stricter guidelines.
"AB163 literally has little or no effect on how we're running our business," said Ila Achtabowski, Owner & Operator, Lend-a-Check.
Lend-a-Check says that they are already making sure that a loan never exceeds 25 percent of a borrower's monthly gross income. But Assemblyman Edgar
Flores says there are loopholes that this bill closes. He says in part, "Closing these crucial loopholes will give Nevadans a fighting chance to get back on their feet."
Advocacy group Opportunity Alliance Nevada agrees that this is an important step, but even more needs to be done.
"What does that law look like going forward, how is it going to be implemented? I mean it's positive that we've had some change but what is it really going to do,” said Nancy Brown, President of Opportunity Alliance Nevada
Better guidelines will be released by the Nevada Financial Institutions Division after they consult with the Attorney General’s office, but consumers should expect to be more thoroughly vetted before receiving any sort of short term, payday, or signature loan.