Hawaii Takes a Bite Out of Payday Loan Sharks

The Pew Charitable Trusts is touting a big legislative victory in the fight against legalized loan sharks with the passage and signing of a bill that creates a rate cap on payday loans and facilitates access to affordable credit.

The new law, which was championed by state Representative Aaron Ling Johanson (D), state Senator Rosalyn Baker (D), and Commissioner of Financial Institutions Iris Ikeda, will eliminate balloon payment payday loans and enable widespread access to affordable installment credit from licensed lenders.