Payday Loan Reform bill press conference

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WICHITA, Kan. (KAKE) -

Peanut Smith received a four hundred dollar loan a little over two years ago. Now, he's struggling more than he was before. "I mean i knew it at the time, but after you pay on it a little bit, it's kind of a drag. I don't think the interest rate should be that high at all." 

Sometimes people in Kansas just need a little extra cash to make ends meet. Payday loan businesses can charge you up to 351% on interest. But Kansas lawmakers are hoping to reduce that amount across the state. 

"This is a problem that's been around for a while in terms of payday loans taking advantage of low-income communities. It's something we need to address on the state level," says KC Ohaebosim, District 89 State Representative.  

On Tuesday, advocates for payday loan customers, like clergy, held press conferences all over Kansas. They want a Payday Loan Reform Bill. It would cap interest rates and give people more time to pay back the loans. 

"What we're intending to do is to seek legislation that will ease some of the financial burden and the grip that many of our residents are feeling and facing," says Pastor Lamont Holder.

Financial experts are also reminding borrowers to read the fine print and know your rights. "Kansas law does provide for certain protections. Primarily for military personnel, but also elderly and disabled," says Avery Elofsson, Sedgwick County Senior Assistant District Attorney

State lawmakers will consider the bill in January, 2020. 
 

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