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Ohio House Bill Caps Payday Loan Rate
1 May 2008
Opponents said the bill would put 6,000 Ohioans out of work.
COLUMBUS — The Ohio House passed legislation capping interest rates and adding other regulations to the payday lending industry, but not before threatening to include a ban on Keno gaming in the state.
House Bill 545, sponsored by Rep. Chris Widener, a Republican from Springfield, was approved on a 69-26 vote. The bill now heads to the Ohio Senate for further consideration.
Widener, who is chairman of the committee that for months has been considering several separate bills regulating payday lending, introduced his legislation Tuesday. It was forwarded to the floor after a packed committee hearing Wednesday.
Widener said the legislation is needed, because current check-cashing laws have proved harmful to communities and citizens, trapping many in cycles of debt.
An estimated 6.4 million payday loans, totaling upward of $3 billion, are made annually in Ohio, he said. And
payday loan storefronts have grown to 1,600 locations this year from 106 a decade ago.
Read the complete article from Vindy.com