payday loans

Andy Chow / Statehouse News Bureau

After months of sitting in limbo, an Ohio House bill to crackdown on skyrocketing payday lending interest loans might see some movement. The next step is to evaluate the lasting outcomes.

In spite of previous reforms, some payday loan interest rates have approached 600 percent. A bill that would cap rates at 28 percent got its first committee hearing last week. Republican House Speaker Cliff Rosenberger says there are some sticking points to work out.

payday loans protest
ANDY CHOW / STATEHOUSE NEWS BUREAU

Community groups rallied to show their support for a bipartisan bill they think is needed to slow predatory lending in Ohio. 

The bill would cap the interest rate of payday lenders at 28 percent and close any loopholes around that cap. In spite of previous reforms, some of those loans have interest rates approaching 600 percent.

New Payday Lending Rules May Not Help Ohio

Oct 9, 2017
Taber ANdrew Bain / Flickr

New rules issued this past week by the federal Consumer Financial Protection Bureau are meant to rein in payday and auto title lenders. The rules require enhanced credit checks for some loans and cooling off periods after three loans in a row to a single borrower.

photo of Monopoly house and coins
WKSU

Nearly nine years after Ohio lawmakers passed—and voters upheld— a crackdown on payday loan businesses, people are still borrowing from quick-cash lenders. And the lenders are still charging huge interest rates. Statehouse correspondent Karen Kasler says another proposal to regulate the industry is back before legislators.

photo of Monopoly house and coins
WKSU

A report from the Pew Charitable Trusts shows payday lenders in Ohio charge the highest interest rates in the U.S.

Interest rates for payday loans in Ohio are as high as 591 percent. That’s despite the 2008 Short-Term Lending Act, which limits interest rates to 28 percent.

Pew's Alex Horowitz is encouraging Ohio to follow other states that have taken action to curb predatory lending.