After more than a decade without a floor vote on a bill to cap payday lending in Rhode Island, state representatives are asking House Speaker Joe Shekarchi to let the legislation move forward.
Rep. John Lombardi (D-Providence) said he has gathered signatures from more than 50 of 75 members of the House of Representatives seeking a floor vote on a bill sponsored by Rep. Karen Alzate (D-Pawtucket).
So-called payday loans are short-term, same-day cash advances, which in Rhode Island can be up to $500.
As it stands, Rhode Island is one of just two New England states that allow payday lenders to charge the equivalent of triple-digit interest on loans. The lenders say they offer a service to people without other ways of getting money.
But Lombardi and other critics say payday lending traps poor people in a cycle of debt.
“It affects people in the poorer neighborhoods, people of color, people on fixed incomes, senior citizens – that are already burdened with things like redlining and other biases and discriminations – so it’s just time” to address the problem, Lombardi said in an interview.
Lombardi’s effort to bring the issue to a vote was first reported by The Providence Journal.
Legislation to cap payday lending has languished since 2011.
Lombardi said his bipartisan request to bring Alzate’s bill to a floor vote is discretionary for Shekarchi. At the same time, the speaker has often described the chamber as being driven by its membership, so it could be difficult for him to ignore a request by more than two-thirds of state representatives.
In a statement, Shekarchi said, “I will be reviewing the public testimony and talking to the committee members and the committee chair. I also look forward to hearing from my House colleagues to see if they indicate it is a top priority for them.”
As Lombardi noted, even if the House passes Alzate’s bill, the outlook could be less certain in the state Senate, where Sen. Ana Quezada (D-Providence) has sponsored a bill to restrict payday lending.
Senate spokesman Greg Pare said Senate President Dominick Ruggerio does not want to prejudge the process before Quezada’s bill is heard in the Senate Commerce Committee.
“The Senate will review all aspects of the latest payday lending proposal through a thorough, public committee hearing process,” Pare said.
This report has been updated.
Ian Donnis can be reached at idonnis@ripr.org. Follow him on Twitter @IanDon. Sign up here for his weekly RI politics and media newsletter.
