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Payday Lender Bill Has First Hearing In Ohio House

Nov 29, 2017

Republican State Representativ Kyle Koehler, with faith leaders in background, talks about his payday lending bill in June 2017.
Credit Ohio Public Radio

A bipartisan bill that would crack down on Ohio’s 650 payday lenders has received its first hearing in the House.

Ohio Public Radio's Jo Ingles reports.  

A 2008 law toughened rules on payday lenders, but many of them have figured out a way to skirt that law. Pastor Carl Ruby of the Central Christian Church in Springfield says legislation at the state level is even more important now given recent changes in Washington.

“I believe the Consumer Financial Protection Bureau is going to be gutted and we don’t expect any help from them. Ohio has to fix this.”

Republican Kyle Koehler is sponsoring a bill to shut down loopholes lenders are currently using to charge up to 600% interest per year – a Pew Charitable Trusts study showed Ohio has the highest rates in the nation. His bill would cap that interest rate at 28% per year.