Payday lenders in Ky. are coming under increasing restrictions because of a pair of laws passed by the state and federal governments in recent years.
The Kentucky General Assembly in 2010 enacted a measure creating a database, "Veritec," to record each loan via a Social Security number and other personal information.
Congress created the Consumer Financial Protection Bureau which began regulating payday lenders in 2011.
State banking agency commissioner Charles Vice told The Courier-Journal that the rules have been a huge tool for regulators, who have seen the amount of fines collected increase in recent years.
A spokeswoman for the Community Financial Services Association of America, a trade group based in Alexandria, Virginia, says payday loans provide crucial credit to consumers struggling with tightened lending at banks.