House approves payday‑lending changes that raise loan caps and fix fee authority

The Kentucky House passed Senate Bill 219 after adopting a committee substitute and a floor amendment. Sponsors described the bill as a regulatory 'cleanup' for deferred deposit transactions and payday lending.

The gentleman from Taylor, explaining the bill, said the measure removes the Department of Financial Institutions' authority to set the payday-lending database fee and instead sets that fee at the $3 cap previously approved by the General Assembly in 2024. The bill increases the payday loan limit from $500 to $600 and applies an inflation escalator that caps out at $850.

A floor amendment, offered by the gentleman from Jessamine, was adopted to permit lenders to continue collecting on a debt after an account is closed. The sponsor said the changes are intended to keep the industry regulated without increasing general fund costs for oversight.

The House recorded final passage with 87 members voting aye and 5 members voting nay. The sponsor moved for clincher and procedural steps concluded.