payday loans

Photo of Huffman proposing changes
KAREN KASLER / OHIO PUBLIC RADIO

Some major proposed changes are coming to a bill that passed the Ohio House overwhelmingly earlier this month cracking down on the payday lending industry. Borrowers here pay an average of 591 percent annual interest, the highest in the nation. Statehouse correspondent Karen Kasler reports while one Republican senator is hoping for a compromise, supporters of Houses-passed crackdown are furious.

photo of Ohio Legislature
JO INGLES / STATEHOUSE NEWS BUREAU

The Ohio House has passed a controversial payday-loan bill meant to close loopholes those lenders use to charge high interest rates. The vote occured as a reported probe into activities involving the former Speaker and payday lending lobbyists continues.

Republican Kyle Koehler says passage of the bill will help many Ohioans who tell him the interest they pay on their payday loans is so high that they can’t afford basics like groceries.

Kirk Schuring and Ryan Smith
STATEHOUSE NEWS BUREAU

There may be an end in sight when it comes to the House speaker impasse that’s caused dysfunction at the Statehouse. A plan has been proposed that could result in either a new speaker or an interim leader who would act as a stand-in for the rest of the year, though some Republicans oppose the idea, and many Democrats say they won’t participate in it.

What could that mean for one of the biggest issues on Capitol Square; payday lending?

Photo of Don Brey
KAREN KASLER / STATEHOUSE NEWS BUREAU

A crackdown on payday lenders that lawmakers haven’t passed is a step closer to going before voters next year.

 

The Short-Term Loan Consumer Protection Amendment will look familiar to many, according to Don Brey, the lawyer for the group of activists and faith leaders that wants it approved.

“It’s basically, with a couple tweaks, the same as H.B. 123.”

Payday lending storefronts
Andy Chow / Statehouse News Bureau

A battle is brewing over payday lending in Ohio. There are more than 650 storefronts in the state but the industry argues that a new bill threatens to shut them all down. However, consumer advocates say payday lending has been skirting around state law for years to prey on desperate borrowers. 

“It just snowballed so bad and I couldn’t get out of that hole.”

Denise Brooks, a single mother from Cincinnati, was desperate to pay her car insurance bill. So she took out a loan from a payday lender.

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