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Ohio Senate Takes Aim on Payday Loan Interest


15 April 2008
Ohio Senators take aims on capping the interest rates payday loan lenders can charges customers. Under current regulations, Ohio Payday Loan Lenders can charge up to 391 percent interest. A Bill introduced yesterday, would put a new interest cap of 36 percent.

This would put the current rate allows Payday Loan Lenders to charge $15 per $100 borrowed. If passed, the new rate would be less than $1.50 per $100 borrowed. This would effectly put most of the state's 1600 payday loan businesses out of business.

The Ohio Senate is expected to let the House vote on the Bill before they vore on the issue.

Sen. Timothy J. Grendell, R-Chesterland, the bill's sponsor, blames Payday Loan lenders for perpetuating a cycle of debt. Placing many Payday Loan borrowers in a position they are unable to break free from. he has been working for years for tighter payday loan restrictions.

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