Payday lending supporters will have to rewrite a petition before they can start to collect over 240,000 signatures required put an issue on the November 4th statewide ballot.
Attorney General Nancy H. Rogers said that a description was not truthful in the petition summary submitted to her office.
House Bill 545 lowered the yearly interest rates for payday lenders from 391 percent to 28 percent and would limit the total amount of loans per year to 4. Supporters of the industry say the bill will drive over 1,600 stores out of business.
The summary did not include the interest rate cap. Rogers also revealed that the language used inflammatory phrasing concerning “personal information” and overstated the impact on credit union loans.
Supporters will now have to rewrite the summary and collect 241,365 signatures by August 31st to get the referendum on the ballot. Otherwise, the law would take effect.
