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Fri Jul 13, 2018, 03:25 AM

Ohio Payday lending bill: Who wins and who loses?

Dozens of people – both in and outside Ohio -- worked hard for and against a bill restricting payday lending, which passed the Ohio Senate Tuesday.

House Bill 123 is poised to become law, although it still needs a final signoff from the Ohio House, which isn't meeting again until at least September. Then it would head to Gov. John Kasich for his signature.

The bill limits payday loans interest rates to 28 percent. Interest rates have no limit today because payday lenders skirted interest rate requirements from 2008 and register under a part of Ohio law that doesn’t cap interest or fees.

The Pew Charitable Trusts says Ohio's average interest rate is the nation’s highest at 591 percent, a figure the industry disputes.

Read more: https://www.cleveland.com/expo/news/erry-2018/07/02a66225119705/payday-lending-bill-who-wins-a.html

Which does the industry dispute, that the average interest rate is 591% or that Ohio has the highest average interest rate in the nation? Neither one is good.

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Reply Ohio Payday lending bill: Who wins and who loses? (Original post)
TexasTowelie Jul 2018 OP
SWBTATTReg Jul 2018 #1

Response to TexasTowelie (Original post)

Fri Jul 13, 2018, 05:19 AM

1. Wow...surely there is a study out that would list the states w/ the highest interest rates (lending

for homes (real estate), personal loans, car loans, etc.

Of course each state probably has additional add on costs, such as loan origination points, etc., but I'm sure that studies made on these types of loans and comparing them on a state by state basis take this into account.

Ohio having an average interest rate of 591% annually does seem really high, so either there are other factors involved such as instate fees for loans (required by Ohio law if such a law on the books), etc. Perhaps also Ohio may have the highest foreclosure rate on its car or home loans? If so, rates could be high because of this.

This high interest rate would make buying just about everything in Ohio pretty well impossible, and you might as well close up shop in Ohio and move away.

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