Payday loan regulations need to be tightened

Idahoans are renowned for a "live and let live" attitude when it comes to their neighbors. When it comes to business, as long as it's legal and you give good value for the money, folks are pretty supportive of others' attempts to make a living.

But when it comes to payday loans, Idaho has fallen behind the times. The Gem State is only one of eight in the nation that either has not prohibited payday loans or tightened rules on interest rates and loan terms

In Idaho, the Department of Finance only requires lenders disclose dollar rates and the annual percentage rate of the loan.

Sen. Shawn Keough, R-Sandpoint, and Rep. George Eskridge, R-Dover, are trying to do something about that. Keough is drafting legislation to strengthen the rules regarding payday loans in the state.

Payday loan folks say they fill an important gap — those using their services can't get a loan at a more traditional banking facility. However, when the annual APR can hit as high as 520 percent, the system is broken.

In the wake of the subprime mortgage mess, I can understand banking officials' hesitation about not wanting to make any risky loans but there should be some kind of program to help qualified candidates in an emergency situation.

Folks living paycheck to paycheck face enough of a challenge from $3 gas to rising utility bills.

Tighter restrictions would protect those who are most financially vulnerable without unduly crippling the industry.

We support Keough's legislation — and so should you.

Caroline Lobsinger is the managing editor of the Daily Bee.