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Ohio Senate OKs Payday Lending Bill After Changes
By: Associated Press
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COLUMBUS, Ohio (AP) – Ohio’s Republican-controlled Senate has toughened a proposed bill cracking down on the short-term lending industry and returned the measure to the House.
During a rare July session Tuesday, senators approved the bill, 21-9. Nine Republicans opposed restrictions tacked onto the legislation over the payday lending industry’s objections.
The Senate bill bars loans with terms of less than 30 days. Payments on loans of 90 days or less can’t exceed 7 percent of a borrower’s monthly net income, or 6 percent of the gross income, under the plan. Fees and interest can’t be more than 60 percent of the loan’s original principal amount.
The restrictions add to interest-rate caps and fee limits that cleared the House last month.
Ohio has some of the highest payday loan rates in the nation.