The Senate committee on commerce, labor and energy heard a bill Wednesday that would put limits on how payday loans are doled out.
Senate Bill 17, brought by Nevada Treasurer Dan Schwartz’s office, would make it so people can only have one active payday loan out at a time, and would put a “cooling off” period of 45 days between loans.
It would also create state database to track those who apply for payday loans to ensure borrowers are not receiving more than one at a time.
“It is not my intent to end payday loans, but to protect Nevadans,” Schwartz said.
Nevada is one of seven states that does not have an interest rate cap on payday loans.
The average cost to borrow $300 for five months in Nevada is $596, based on an annual percentage rate of 512 percent, according to a study by The Pew Charitable Trusts in 2014.
Contact Colton Lochhead at firstname.lastname@example.org 702-383-4638. Follow @ColtonLochhead on Twitter.