Now that the Ohio House has – at long last – taken steps to rein in legalized loan-sharking, state senators should ignore pressure and protests from those who profiteer from the poor and act quickly to endorse payday-lending restrictions.
House Bill 545, passed by a bipartisan 68-26 vote, would cap annual interest on payday loans at 28 percent. Currently, interest and fees can run as high as an annual rate of 391 percent. The legislation also would establish a minimum 31-day loan period, limit customers to four loans in 12 months, and prohibit loan-initiation fees.