When Johnathan Fletcher needs some quick cash, he turns to the pawn shops.

Johnathan Fletcher

Pawn shop customer

"Sometimes you just need the money up front and you can get it real easy."

Fletcher says the trade off of getting an easy loan at a high interest rate works for him, but some say there should be more limits. A Senate bill would mean people in the business of giving out short term loans would have to drop their interest rates dramatically.

Right now a customer could pawn an item like this Ipod for $100 and pay a 240 percent interest rate, a profit of about $20 for a pawn shop. If this bill passes, the pawn shop's profit would drop to about $3.

Brandi Morrison

Cash 'N More owner

"I just don't see how we are going to be, as pawn brokers, stay in business."

Cash 'N More owner Brandi Morrison says the bill aims to protect consumers but, she says, it would end up hurting them.

Brandi Morrison

Cash 'N More owner

"They can't go to a bank to get a five dollar loan or a ten dollar loan, where they can come in here and get those."

MSU Economics Professor Bob Harmel says there are some positives to the proposal, but ultimately...

Dr. Bob Harmel

MSU Economics Professor

"Can you ever stop exploitations through government controls of markets? The reality is no. The harder you try, the more regulations you put, the more you choke down on people who are legitimately asking for options and business people who are, many of whom are trying to do it right."

According to this bill, consumers pay on average 400 percent annual interest for payday loans, 300 percent for car title loans and up to 3500 percent for bank overdraft loans. For a complete copy of the bill, visit http://www.consumerlaw.org/issues/legislative/content/S500.pdf