Bill Seeks To Change Payday Loan Practice

Thursday, February 15th 2007, 11:58 am
By: News On 6

OKLAHOMA CITY (AP) -- So-called payday loan companies would not have a priority right to a debt when a borrower dies under a bill passed by the Oklahoma Senate on Thursday.

Senator Jay Paul Gumm says payday lenders who charge high interest rates typically require the borrower to give them a post-dated check to pay off or apply toward a loan.

Gumm says his bill will prevent the cashing of those checks if the person dies.

The bill now goes to the state House for consideration