FRANKFORT, KY – Gov. Steve Beshear today said the passage of House Bill 500, placing stronger regulations on so-called “pay-day loan” companies, is an excellent move toward good consumer legislation for citizens of the commonwealth.

“This legislation will add further protection for those who are vulnerable and in need of short-term cash,” said Gov. Beshear.

HB 500, sponsored by Rep. Johnny Bell (D-Glasgow) requires, among other things, the development of a database of deferred deposit transactions that will better track the activity of lenders. It also would impose a one-day "cooling off'' period before customers could apply for and take out another loan. The amount of loans would be limited to either $500 or no more than 30 percent of a borrower's income.

“Today’s action is a step in the right direction in bringing additional oversight to the industry while allowing licensed lenders to continue providing services,” said Rep. Bell.

HB 500 now goes to the Senate for further action.

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