If Gov. Lee Signs Off Payday Loan Companies Could Charge 36 Percent Interest Rates

A bill allowing interest rates to increase to 36% at certain money-lending places is now headed to Tennessee Gov. Bill Lee’s desk.

The bill would allow any amount of $100 or more to have an effective annual interest rate of 36%.

The bill passed in the Senate along party lines, but in the House, a few Republicans voted against the measure. The vote in the House was 61-26-8.

Political action committees of payday lending companies in Tennessee donate heavily to lawmakers.