Local Community Groups Rally To Tighten Payday Lending Interest Rates
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 percent and close any loopholes around that cap.
In spite of previous reforms, some of those loans have interest rates approaching 600 percent.
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,” Mockabee said.
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.