PROVIDENCE – After years of failed attempts to regulate payday loans in Rhode Island, state lawmakers have a new weapon in their arsenal this year: public opinion.
A new poll published by The Center for Responsible Lending, the Economic Progress Institute and Capital Good Fund shows that 59% of Rhode Island voters support lowering payday loan interest rates from their current 260% to 36% — the same rules followed by at least 18 other states, as well as federal policies for active military personnel under the Military Leave Act. Just 10% of voters surveyed opposed the rate cap, while 31% were undecided.
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Efforts to crack down on payday lenders in Rhode Island – one of two Northeast states with no regulations on these predatory lenders, according to the Economic Progress Institute – have been ongoing but have failed to make it past committee hearings in years prior.
Bills to regulate these “deferred deposit providers” were again introduced in the General Assembly this month, and advocates hope the poll results will pressure lawmakers to approve a rate cap this year.
The poll also showed that 4 in 10 voters surveyed would be more likely to vote for a candidate who supported the 36% rate cap.
“The payday loan companies drain millions of dollars each year from Rhode Islanders,” Margaux Morisseau, co-chair of the Rhode Island Payday Lending Reform Coalition, said in a statement. “These predatory loans have been curbed in many states, including all of our neighboring states, and now it is time for Rhode Island to end this usurious practice too. A 36% APR rate cap is the best solution. Voters overwhelmingly support this reform, and you can bet this will be a big issue during this election year.”
Eighteen states and Washington, D.C., already have a 36% rate cap, mirroring federal policies for active military personnel under the Military Leave Act.
The poll reflects results of 400 Rhode Island residents who were surveyed by phone in January.
Bills introduced by Rep. Jean Barros, D-Pawtucket, and Sen. Ana Quezada, D-Providence, were referred to their respective committees with no hearings scheduled as of Monday.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
