payday loans

New Payday Lending Rules May Not Help Ohio

Oct 9, 2017
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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.

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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.