Payday lenders to face stronger scrutiny - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Payday lenders to face stronger scrutiny

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LOUISVILLE, Ky. (AP) - Payday lenders in Kentucky are coming under increasing restrictions because of a pair of laws passed by the state and federal governments in recent years.

The Kentucky General Assembly in 2010 enacted a measure creating a database, "Veritec," to record each loan via a Social Security number and other personal information.

Congress created the Consumer Financial Protection Bureau which began regulating payday lenders in 2011.

State banking agency commissioner Charles Vice told The Courier-Journal (cjky.it/1mSLtPP) that the rules have been a huge tool for regulators, who have seen the amount of fines collected increase in recent years.

A spokeswoman for the Community Financial Services Association of America, a trade group based in Alexandria, Virginia, says payday loans provide crucial credit to consumers struggling with tightened lending at banks.

Information from: The Courier-Journal, http://www.courier-journal.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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