An industry-backed bill to reform the payday lending industry is moving forward in the Assembly. A bill similar to the one passed by the Senate last week was approved by a House committee yesterday. The legislation would create a statewide database to track payday loans, and borrowers would be limited to three payday loans at a time.

Borrowers also couldn't take out a loan on the same day they paid one off. If a borrower has three outstanding loans, he or she can enter into an extended payment plan that would provide 60 days to pay off the loan. Payday loans work by allowing a borrower to write a check up to 500 dollars, plus a fee for 15 dollars for every 100 dollars borrowed. The company holds the check until the customer's next payday, when he or she either pays off the loan or the lender cashes the check.

Resource: http://www.wtvr.com