Ohio Governor Signs Updated Payday Lending Restrictions

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COLUMBUS, Ohio (AP) – Ohio Gov. John Kasich has signed into law a proposal cracking down on Ohio’s short-term lending industry.

The bill approved by the Republican governor Monday caps interest rates and limits fees on such loans. It also 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.

Fees and interest can’t be more than 60 percent of the loan’s original principal amount.

Ohio has some of the highest payday loan rates in the nation.

The Ohio House earlier this month approved a Senate version of the bill that added restrictions over the payday lending industry’s objections.