Official aims to limit
payday loans online.
Nevada payday lenders should be barred from making loans over the
Internet to protect consumers in other states, a state official proposed
Friday.
The Internet enables payday lenders, among others, to operate around
the country without regard to state lines, said George Burns, commissioner
of the Financial Institutions Division.
The proposed rule wouldn't prohibit payday lenders with licenses in
other states from making payday loans where they have licenses, but
it would eliminate the problem of payday lenders in Nevada violating
laws in other states, Burns said.
The solution: Bar Nevada payday lenders from making any bad credit
loans over the Internet.
At a workshop meeting Friday in the Sawyer Building, one payday lender
complained that banning licensed lenders from the Internet would drive
borrowers to unlicensed offshore lenders. Burns later suggested that
wasn't likely given the impracticability of foreign lenders collecting
no fax payday loans in Nevada for as little as $100.
However, he acknowledged that borrowers often need only walk across
the street to borrow money from another payday lender.
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