South: Payday Lending is a Bad Thing Act

[Associate Justice PiT]

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Sponsor: Governor Flo

[Flake]

I think this bill is self explanatory, it basically makes loan sharking (?) illegal and helps protect consumers from those loans.

[Associate Justice PiT]

     I think it is worth noting that payday loans are federally banned, by the Fair Interest Rates Act. That bill, however, does not actually define payday loans at all, which concerns me.

[Flake]

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[Fmr. Pres. Duke]

I thought this was banned federally, but if it's not defined we need to go ahead and do that so people can't find a way around the loopholes. Loan sharking should be illegal everywhere because it preys on people who don't know any better.

[Associate Justice PiT]

     I am deeply suspicious of the legality of us defining federal crimes. We would need our own statute. Perhaps state that "The bill will be enforced by the same penalties as provided in the Fair Interest Rates Act."

[Associate Justice PiT]

     I am offering this officially as an amendment:

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     Legislators or the sponsor will have 24 hours to object (or more depending on when we get around to it).

[Fmr. Pres. Duke]

I support the amendment

[Barnes]

The federal government recently addressed the issue of payday lending through the Postal Service Community Financial Lending Act which when fully operational should provide a working alternative to these disreputable services.

As Secretary of Internal Affairs, I commend the Southern Legislature for considering this legislation and I fully support its passage.

[Associate Justice PiT]

     The amendment is adopted. Also, I would like to thank the Secretary of Internal Affairs for checking in with us here. I may look at that bill to ensure that nothing here clashes with provisions of that law.

[Associate Justice PiT]

     Last call for amendments here. I'll start the vote in about 24 hours otherwise.

[Associate Justice PiT]

     Alright, the final vote is now open on this bill.

[Fmr. Pres. Duke]

Aye

[Associate Justice PiT]

     Aye. I'm sort of ambivalent about the bill itself, but I think it is good to be specific with this and the federal statute is as vague as possible. Might as well.

[Associate Justice PiT]

     This bill passes with two votes in favor and one non-voting. It is presented to Governor Flo for his signature.

[Flake]

x Flo