The Ohio General Assembly passed legislation last week
that would cap interest rates on payday loans at 28 percent – following several
other states that have taken steps to drastically curtail the triple digit interest
rates charged by payday installment lenders.
“Getting a short term loan in
Strong consumer protections that would protect every borrower walking into a payday loan store are currently under consideration in the Illinois General Assembly. The current proposal would substantially lower the cost of borrowing, prevent over borrowing, or using the proceeds of one payday loan to pay off another.
“Many working families are struggling to pay off these
predatory loans” said Greg Brown, Director of Social Policy at Metropolitan
Family Services. “This is a critical opportunity to protect consumers in
The Ohio Senate voted 29-4 to approve House Bill 545,
which passed the Ohio House two weeks ago. The bill limits interest rates
on payday loans to 28 percent annually. Ohio Governor Ted Strickland is
expected to sign the bill, according to several