Fierce debate over payday loans.
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Feb. 28–The Georgia General Assembly tried for decades to push payday lenders out of business. But the purveyors of short-term, high-interest loans always found a way to survive. That changed three years ago, when commanders at Georgia’s military bases launched an attack on payday lending and the General Assembly responded by shuttering the multimillion-dollar industry, which advances cash until a worker’s next paycheck arrives. Today, the General Assembly is in the midst of a fierce debate over legislation that would bring payday lending back. The state House is expected to take up a bill in the next week that would legalize the high-interest loans. House Bill 163, which has been gaining momentum in recent weeks, has been approved by the House Banks and Banking Committee. Backers say there’s a market for the loans, but the industry is strongly opposed by consumer advocates. Atlanta’s Clark Howard, the consumer guru who hosts a syndicated radio talk show, said he took two vacation days to testify against the bill at the Capitol. “I’m just heartsick over this,” Howard said in an interview. “We in Georgia have been doing the right thing and now we’re about to do the wrong thing.” The plan to bring back payday lending prompted emotional debates in committee hearings. It pitted two of the state’s top Republicans… |