Wyoming lawmakers kill short term lending fee cap bill

A legislative committee in Wyoming has rejected a bill that would have cracked down on short term lending in the state, according to the Wyoming Tribune Eagle in Cheyenne. The proposal would have capped post-dated checks at $400 and set the maximum finance charge at 15 percent monthly or 45 percent annually. Currently, short term lenders are only allowed to ask for 20 percent in charges for each transaction, says the news source. Members of the House Corporations, Elections and Political Subdivisions Committee considered an annual limit on loans that were intended as month-long investments to be pointless. They also voiced concerns about a provision that would triple the maximum length of short term loans to three months. Bill sponsor Representative Dan Zwonitzer of Cheyenne, explained that Wyoming is one of the few states without a maximum limit on this form of nontraditional credit. Short term loans have been a constant topic of conversation at meetings on the municipal, state and federal levels. Some consumer advocates believe these loans trap people with financial difficulties in a cycle of debt. However, advocates for the industry say that they are just offering a line of credit for consumers who have few other options, either due to bad credit, no credit or the need for money immediately.