payday lending reform

photo of payday lending storefront
KAREN KASLER / STATEHOUSE NEWS BUREAU

Credit unions are disagreeing with claims that they will directly benefit from a new bill that’s written to crack down on the payday lending industry. As the credit unions argue, they’re already operating from a different, tough set of rules.

Payday lenders have claimed the Senate’s version of the payday lending crackdown would create an unlevel playing field.

photo of Senate Finance Committee
ANDY CHOW / STATEHOUSE NEWS BUREAU

A bill to overhaul the payday lending industry in Ohio is heading back to the House after the Senate approved the legislation with some changes. Consumer advocates are touting this as sensible reform while lenders argue this will put them out of business. 

photo of Senate Finance Committee
ANDY CHOW / STATEHOUSE NEWS BUREAU

The Ohio Senate is introducing changes to a payday lending crackdown that passed the House by a big margin. Supporters of the legislation say it will help shutdown predatory lending and a cycle of debt.

The Senate's changes raise the maximum payday loan amount to $1,000. The bill also caps the principal and fees on those loans at 7% of the borrower’s monthly income, and says total costs, meaning fees and interest rates, cannot be more than 60% of the original loan.

photo of Senate Finance Committee
ANDY CHOW / STATEHOUSE NEWS BUREAU

The bill to clamp down on payday lending interest rates and fees has hit another wall. After passing out of the House with strong support, Senate Republicans have halted the bill in committee in order to consider possible changes.

Democrats on the committee tried to force a vote on the bill, but Senate Republicans were able to rally enough opposition to stop that vote.

OHIO PUBLIC RADIO

Ohio lawmakers are preparing for a busy week at the Statehouse as they’re set to pass several big bills before leaving for summer break. As Statehouse correspondent Andy Chow reports, this week could set the tone for the lawmaking agenda for the rest of the year.

The payday lending bill is headlining the week as supporters and opponents clash over the measure. Consumer advocates are trying to fight proposed changes that they believe would gut the bill.

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