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Ohio GOP Lawmakers Propose Payday Loan Cap

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The Dispatch wrote GOP bill stuns payday lenders

Wednesday, April 30, 2008

By Jim Siegel

After months of debate over whether to cap payday-lending interest rates at 36 percent, House Republican leaders tossed a sharp curveball yesterday by proposing a 28 percent cap.

Stunning both the payday-lending industry and consumer advocates, House Financial Institutions Chairman Rep. Christopher R. Widener, R-Springfield, made major changes yesterday to a plan he introduced last week that did not lower the current 391 percent rate.

Widener introduced House Bill 545, which would cap payday lending rates at 28 percent, limit borrowers to four loans per year, cut the maximum loan size from $800 to $500 and require that borrowers get at least 31 days to pay off a loan.

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I think I woke up in an alternate universe today. The only thing that would be better than this is if they expedited the vote and dropped it on Strickland’s desk next week.

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