A showdown is expected today in the state Senate on payday loans.

The big issue; should there be a limit on interest rates? State Senator Kathleen Vinehout (D-Alma) thinks there should be in order to send a clear message to the industry that the financially vulnerable should no longer be taken advantage of.

The bill up for Senate action does not currently include an interest rate cap, but an amendment to impose a limit is expected to be offered.

The payday lending industry has argued that such a cap would put them out of business. An Assembly version of the bill approved earlier this year did not include a limit on interest rates, but did cap the size of loans.

AUDIO: John Colbert reports (:30)

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