July 30, 2014
A judge has urged a state Senate panel to support legislation to end abuses by some payday loan companies charging interest rates that are --quote-- "flat-out unconscionable."
Felix Salcedo, a retired Reno justice of the peace who's now a senior judge, added in comments to the Commerce and Labor Committee that he has seen cases of interest rates as high as 73-hundred percent.
Salcedo says forms provided by the payday loan companies disclose the consequences of late or no payments by borrowers, but desperate people in need of a loan don't worry about what's on the form.
A bill by Assembly Speaker Barbara Buckley would stop the abuses by closing a loophole in a 2005 law. Buckley describes the effect of the practices as creating "an endless cycle of debt" for borrowers.