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Ohio House OKs Senate changes on payday loan bill
Wednesday, May 21, 2008
COLUMBUS — The Ohio House has agreed to minor changes the Senate made to a bill intended to curb high interest rates attached to so-called payday loans.
The bill, which the House approved 70-24 Tuesday, May 20, would limit borrowers to four short-term loans a year and cap annual interest rates at 28 percent.
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Payday lenders generally charge about $15 for every $100 borrowed on a two-week loan, which would be the equivalent of a 391 percent annual interest rate.
The Senate added a provision that would prevent loans from being separated into $100 amounts to maximize fees. Opponents said the bill will close hundreds of such outlets and put up to 6,000 people out of work.
Gov. Ted Strickland is expected to sign the bill into law, perhaps next week.
