Consumer protections headed to Ohio governor’s desk
COLUMBUS — House Democrats today applauded the passage of House Bill 123, a bipartisan effort to enact consumer protections for the thousands of Ohioans who use short-term loans every day.
Borrowers in Ohio currently pay some of the highest rates in the nation for payday loans, with estimated average interest rates at more than 500 percent.
“HB 123 provides a fix to a loophole that has allowed predatory lenders to rig the system against working Ohioans,” said state Rep. Michael Ashford, D-Toledo, one of the bill’s joint sponsors. “These protections put money back into the pockets of consumers and gives them a chance to get a fair deal for an opportunity to get ahead.”
Under HB 123, borrowers would have more time to pay back loans, and monthly payments would not exceed seven percent of monthly net income. The bill also prohibits interest and fees from exceeding 60 percent of the original loan principal.
“Working families who struggle to put food on the table or gas in the tank will benefit from this long overdue reform,” said House Minority Whip Emilia Sykes, D-Akron. “These common-sense consumer protections were a long time coming, and Ohioans will now have the peace of mind of knowing that when they apply for a short-term loan, they will be getting a fair deal.”