WASHINGTON — Assuming the city's mayor and the U.S. Congress goes along, Washington, D.C. will have capped the interest payday lenders in the city can charge to no more than 24%, the same cap that other financial institutions chartered by the city face.
The D.C. City Council voted today to make payday lenders subject to the same cap. The legislation still needs to be approved by the D.C. Mayor and allowed to stand by the U.S. Congress in order to become law.
Payday lenders were exempted from the cap in 1998.
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The Maryland and District of Columbia Credit Union Association applauded the move, but CEO Michael Beall remarked that the change, should it become law, will obligate more area credit unions to step forward with alternative products that can help meet the need for short term, lower amount loans.
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