payday loans

photo of KSU President Beverly Warren
NATHANIEL BAILEY / KENT STATE UNIVERSITY

Here are your morning headlines for Monday, April 29:

Photo of Huffman proposing changes
KAREN KASLER / OHIO PUBLIC RADIO

Some major proposed changes are coming to a bill that passed the Ohio House overwhelmingly earlier this month cracking down on the payday lending industry. Borrowers here pay an average of 591 percent annual interest, the highest in the nation. Statehouse correspondent Karen Kasler reports while one Republican senator is hoping for a compromise, supporters of Houses-passed crackdown are furious.

photo of Ohio Legislature
JO INGLES / STATEHOUSE NEWS BUREAU

The Ohio House has passed a controversial payday-loan bill meant to close loopholes those lenders use to charge high interest rates. The vote occured as a reported probe into activities involving the former Speaker and payday lending lobbyists continues.

Republican Kyle Koehler says passage of the bill will help many Ohioans who tell him the interest they pay on their payday loans is so high that they can’t afford basics like groceries.

Kirk Schuring and Ryan Smith
STATEHOUSE NEWS BUREAU

There may be an end in sight when it comes to the House speaker impasse that’s caused dysfunction at the Statehouse. A plan has been proposed that could result in either a new speaker or an interim leader who would act as a stand-in for the rest of the year, though some Republicans oppose the idea, and many Democrats say they won’t participate in it.

What could that mean for one of the biggest issues on Capitol Square; payday lending?

Photo of Don Brey
KAREN KASLER / STATEHOUSE NEWS BUREAU

A crackdown on payday lenders that lawmakers haven’t passed is a step closer to going before voters next year.

 

The Short-Term Loan Consumer Protection Amendment will look familiar to many, according to Don Brey, the lawyer for the group of activists and faith leaders that wants it approved.

“It’s basically, with a couple tweaks, the same as H.B. 123.”

Payday lending storefronts
Andy Chow / Statehouse News Bureau

A battle is brewing over payday lending in Ohio. There are more than 650 storefronts in the state but the industry argues that a new bill threatens to shut them all down. However, consumer advocates say payday lending has been skirting around state law for years to prey on desperate borrowers. 

“It just snowballed so bad and I couldn’t get out of that hole.”

Denise Brooks, a single mother from Cincinnati, was desperate to pay her car insurance bill. So she took out a loan from a payday lender.

Photo of advocates for Payday lending reform
ANDY CHOW / STATEHOUSE NEWS BUREAU

A group is taking another swing at getting an issue on the ballot that would cap payday loan interest rates. The initiative was delayed after the attorney general’s office rejected the first set of petitions. 

Ohioans for Payday Loan Reform say they’ve looked over all the comments provided by the attorney general’s office and they’re confident that their revised petition language will be accepted.

Photo of Schuring
OHIO STATEHOUSE

A citizens group is trying to put an issue on the ballot that would cap the interest rates of payday loans at 28 percent without the loopholes in current law. The ballot measure is in reaction to lawmakers failing to move on a similar bill. But House leaders say they’re ready to move forward.

Republican Rep. Kirk Schuring of Stark County says lawmakers are close to rolling out a revised bill, but it’s unknown how closely it will resemble the current bill to cap interest rates, which have reportedly skyrocketed to 590 percent.

Andy Chow / Statehouse News Bureau

After months of sitting in limbo, an Ohio House bill to crackdown on skyrocketing payday lending interest loans might see some movement. The next step is to evaluate the lasting outcomes.

In spite of previous reforms, some payday loan interest rates have approached 600 percent. A bill that would cap rates at 28 percent got its first committee hearing last week. Republican House Speaker Cliff Rosenberger says there are some sticking points to work out.

payday loans protest
ANDY CHOW / STATEHOUSE NEWS BUREAU

Community groups rallied to show their support for a bipartisan bill they think is needed to slow predatory lending in Ohio. 

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.

New Payday Lending Rules May Not Help Ohio

Oct 9, 2017
Taber ANdrew Bain / Flickr

New rules issued this past week by the federal Consumer Financial Protection Bureau are meant to rein in payday and auto title lenders. The rules require enhanced credit checks for some loans and cooling off periods after three loans in a row to a single borrower.

photo of Monopoly house and coins
WKSU

Nearly nine years after Ohio lawmakers passed—and voters upheld— a crackdown on payday loan businesses, people are still borrowing from quick-cash lenders. And the lenders are still charging huge interest rates. Statehouse correspondent Karen Kasler says another proposal to regulate the industry is back before legislators.

photo of Monopoly house and coins
WKSU

A report from the Pew Charitable Trusts shows payday lenders in Ohio charge the highest interest rates in the U.S.

Interest rates for payday loans in Ohio are as high as 591 percent. That’s despite the 2008 Short-Term Lending Act, which limits interest rates to 28 percent.

Pew's Alex Horowitz is encouraging Ohio to follow other states that have taken action to curb predatory lending.