Ohio Sen. Schuring Pushes to Replace Interest-Rate Caps on Payday Loans With Other Limits
The march towards reforming Ohio’s payday lending industry has experienced several shifts in momentum. Now, as it seems like the issue had stalled again, the Republican House speaker is calling in his ace to recommend changes in the bill.
The current bill would cap payday lending interest at 28 percent. Republican Rep. Kirk Schuring of Stark County is recommending a move away from strict caps, saying they could lead to shutdowns of payday storefronts.
“If it is too restrictive then, you might have someone who really needs emergency dollars won’t have access to it. And if they don’t have access to it through a legal channel, then you might imagine what would happen if they have to look at alternative ways,” he said.
Schuring is recommending a borrower can’t take a new loan out if they already have an active one, and the borrower would have a chance to pay the loan off interest-free.
Payday lending reform advocates want to stick with the strict interest rate cap and say Schuring’s suggestions only water the bill down.