© 2021 The Statehouse News Bureau
RSS
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Government/Politics

Plan Would Take Payday Lending Interest Rates From As High As 600% to 28%

payday_lenders_reform_110117_-_chow.jpg
Andy Chow
/
Supporters of a bill that reform payday lending gather at the Ohio Statehouse.

Several community groups rallied to show their support for a bipartisan bill they think is needed reform against predatory lending. 

The bill would cap the interest rate of payday lenders at 28% and close any loopholes around that cap.

In spite of previous reforms, some of those loans have interest rates approaching 600%.

Marsha Mockabee of the Urban League of Greater Cleveland recognizes the role these payday lenders can play.

“But what we’re calling out is it has to be fair used in a way that is not predatory lending.”

The bill was introduced earlier this year but has yet to have a hearing. A Pew Charitable Trusts study earlier this year found 1 in 10 adults has taken out a payday loan from the more than 650 operators in Ohio.

Related Content