Legislature looking at predatory lending practices

Wednesday, February 6th 2002, 12:00 am
By: News On 6

What some call predatory lending practices could be reigned in by the Oklahoma legislature, which is looking at the small loan business.

More than 600 small loan firms operate in Oklahoma, offering loans of less than $500 dollars, at interest rates above 200%. The legislature might reign in companies that charge the highest rates - and force others to stop harassing people to get them to refinance their loans. Steven Dow, Community Action Project: "The industry has been trying to operate outside the scope of Oklahoma's regulatory system and dismantle the system that does exist."

Two bills are pending in the legislature - which have the support of some local lenders trying to reform in the industry.