Payday lending restrictions OK’d, sent to Ohio governor
COLUMBUS (AP) — A proposal cracking down on Ohio’s short-term lending industry is headed to Republican Gov. John Kasich.
During a rare July session day Tuesday, the Ohio House voted 60-24 to approve a Senate version of the bill that added restrictions over the payday lending industry’s objections.
The bill caps interest rates and limits fees on such loans. It also bars loans with terms of less than 30 days. Payments on loans of 90 days or less can’t exceed 7 percent of a borrower’s monthly net income, or 6 percent of the gross income, under the plan.
Fees and interest can’t be more than 60 percent of the loan’s original principal amount.
Ohio has some of the highest payday loan rates in the nation.