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