Lending bill barely makes it to House floor

INDIANAPOLIS—A bill to curb aggressive lenders provoked sharp disagreements in the Financial Institutions committee of the Indiana House of Representatives Thursday.

The fact that it emerged from the committee was more a tribute to the faith lawmakers have in House Bill 1336’s sponsor, Rep. Dale Grubb, D-Covington, than in the bill’s merits.

Rep. Vanessa Summers, D-Indianapolis said she didn’t agree with the way some members of the committee treated Rep. Dale Grubb, D- Covington, and his bill. 

Summers said Grubb is a good politician and members such as Rep. Woody Burton, R-Greenwood, and Rep. Chester Dobis, D-Merryville, should put their faith in Grubb that he will do the right thing with his bill.

“I cannot believe you would do Grubb like that,” said Summers to Burton and Dobis for voting against Grubb’s bill.

Summers said she would pass the bill because she knows Grubb wants to help Indiana, and she didn’t want to see his bill die in committee.

The committee agreed that the bill, which would regulate out-of-state credit unions and state retirement funds, needs a lot of work. 

“I am willing to work together on this bill with the committee,” said Grubb.

Grubb said financial institutions not funded by Indiana have an advantage because they can charge higher rates than financial institutions in Indiana.

Indiana has a maximum interest rate of 21 percent, said Grubb.

HB 1336, aggressive lenders, passed to second reading, 7-4.