The People's Voice

Loan Sharks Probe Asked By House Members

As a follow-up to the killing of the so-called "regulated loan bill" (HB 225) by the House last week, Rep. McGarvey and nine other representatives are asking that a probe be made of the lending practices of small loan operators to determine whether evasion or violations of state tax laws are being committed.

Under HB 471, the 10 legislators seek an appropriation of $5,000 for the State Board of Equalization to investigate "the business of lending money in amounts of $1,000 or less by persons, firms, associations or corporations . . . to determine whether evasion or violation of the laws for taxation of property, proceeds, occupation or business is occurring by reason of the fact the business of lending money in amounts of $1,000 or less" by some lenders "is not licensed and regulated by law . . ."

Excluded from the investigation would be commercial banks, savings banks, private banks, Morris Plan companies, trust companies, savings or building and loan associations, credit unions, and licensed pawn-brokers.

The Board of Equalization would transmit to the Governor and the 36th Legislative Assembly a report on all violations of state law by such lenders which are not licensed and regulated at this time.

Other sponsors of HB 471 are Cerovski, Cumming, Thomas, MacDonald, Gray, Hess, Nichols, Daniels, Anderson (Cascade).