SB 365 by Sen. Rick Ward would impose regulations on the short-term loan industry in response to federal regulations changing in Aug., 2019 that otherwise might wipe out the industry. He told the House Commerce Committee it imposed reasonable restrictions on the industry. He offered some clarifying amendments that set the following rules: 3-12 months, $500-875 in amount, 9 percent simple interest rate monthly, grace periods for payments (10 days) and default (61 days), and 30 days between loans, among other things. Even so, the bill would cause significant shrinkage of the industry.
Rep. Kenny Cox asked what would happen to the industry without the legislation. He was told that even the federal government agency which had promulgated the rules unlikely to be revoked in time admitted it would put most outlets out of business. He also said a number of people would be cut out under the new law because of the minimum, but was told federal regulations would wipe out those products anyway because of the complexities involved, yet would not disappear in Louisiana until the deadline.