low income borrowers

Photo by taberandrew / Flickr

A state law that went into effect early last year limited the number of payday loans borrowers could get per year to eight. It aims to protect people from falling into an endless spiral of debt.

But a Tacoma legislator, who originally backed the law, says it's driving people into the clutches of far worse lenders, on the Internet. 

A law that went into effect at the start of last year puts new limits on payday lenders.  It created a registry of borrowers and restricts them from taking out more than eight of the high-interest loans in a year.