Pew Expert Testifies in Support of Kansas Small-Dollar Loan Reforms

House bill would reduce harm to consumers and protect access to credit

Support of Kansas Small-Dollar Loan Reforms

On Feb. 18, 2021, Nick Bourke, director of The Pew Charitable Trusts’ consumer finance project, testified before the Kansas House Committee on Financial Institutions and Rural Development to support passage of H.B. 2189, a bill to modernize the state’s consumer credit laws, including those governing vehicle title, payday, and installment loans. Bourke testified that empirical evidence from Pew’s original research and reviews of states, particularly Ohio and Colorado, that have enacted similar reforms shows that the measure will protect borrowers and expand access to affordable credit.

Bourke told the committee that H.B. 2189 is a careful, middle-ground approach that balances the interests of lenders and consumers, which explains why several market participants joined community advocates to support this year’s legislation. He also explained why the measure will be effective, demonstrating how its provisions will ensure that all loans feature affordable installments, reasonable amounts of time to repay, and prices that are fair for consumers and profitable for lenders.