Legislation to more tightly regulate and monitor Delaware's payday lending industry is ready for debate on the Senate floor after clearing the chamber's Banking Committee on Wednesday.

House Bill 289 was passed by that chamber two weeks ago in spite of opposition from lenders and industry trade groups who argue the measure will restrict consumer choice and force businesses to close.

The bill aims to limit the number of short-term loans a borrower can obtain to five $1,000 loans in a 12-month period. It also would establish a database to track the number of payday loans issued annually, the total amount of interest and fees paid to satisfy the loans and the number of borrowers who ultimately default.