Ohio House OKs payday lending limits after long delay
COLUMBUS, Ohio (AP) — A bipartisan proposal capping interest rates on short-term loans has cleared the Ohio House after languishing for more than a year.
The measure cleared the House 71-16 Thursday, a day after a weeks-long impasse ended in election of a new speaker.
Republican former Speaker Cliff Rosenberger resigned in April amid an FBI probe into his lavish lifestyle and international travel that included trips involving payday lending lobbyists.
The bill prohibits charging more than 28 percent interests plus monthly fees of 5 percent on the first $400 loaned, or a maximum of $20. Monthly charges can’t exceed 5 percent of a borrower’s gross monthly income.
An earlier Ohio law imposed the same interest-rate cap, but lenders found ways around it.
Payday reform proponents called the bill significant and long overdue.