House Approves New Payday Loan With 200 Percent Interest Rate

The Indiana House approved legislation Wednesday to create a new type of payday loan - with interest rates of up to 200 percent - that opponents argue amounts to predatory lending.

The legislation creates a loan of between about $600 and $1,500, with a term of up to 12 months. Rep. Woody Burton (R-Whiteland) says the loans are aimed at those with poor credit who have nowhere else to turn.