Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Payday Lending Bill Goes Into Effect

Andy Chow

The comprehensive bill that completely changed the landscape for payday lenders in Ohio will officially go into effect this weekend, nine months after it passed, giving the industry time to adjust. 

Supporters say the reformed short term lending industry will be a national model. Ohio Public Radio's Andy Chow reports.


Advocates who wanted to change the payday lending laws in Ohio said too many people were getting caught in a debt spiral, with high interest rates making it impossible to get out.


The bill would cap interest rates at 28%, close loopholes, and keep monthly fees below $30. It also creates payment guardrails for the first three months of the debt.


Alex Horowitz is with Pew Charitable Trusts, which was vocal on this issue. He says this creates a new trajectory for Ohioans who need to borrow.


Horowitz: “Every payment reduces their balance and gives them a pathway out of debt.”


The lending industry warned that the law would run most short term lenders out of Ohio, but Horowitz says it’s actually attracting new lenders to the state.

The Statehouse News Bureau was founded in 1980 to provide educational, comprehensive coverage of legislation, elections, issues and other activities surrounding the Statehouse to Ohio's public radio and television stations. To this day, the Bureau remains the only broadcast outlet dedicated to in-depth coverage of state government news and topics of statewide interest. The Bureau is funded througheTech Ohio, and is managed by ideastream. The reporters at the Bureau follow the concerns of the citizens and voters of Ohio, as well as the actions of the Governor, the Ohio General Assembly, the Ohio Supreme Court, and other elected officials. We strive to cover statehouse news, government issues, Ohio politics, and concerns of business, culture and the arts with balance and fairness, and work to present diverse voices and points of view from the Statehouse and throughout Ohio. The three award-winning journalists at the bureau have more than 60 combined years of radio and television experience. They can be heard on National Public Radio and are regular contributors to Morning Edition, All Things Considered and Marketplace. Every weekday, the Statehouse News Bureau produces in-depth news reports forOhio's public radio stations. Those stories are also available on this website, either on the front page or in our archives. Weekly, the Statehouse News Bureau produces a television show from our studios in the Statehouse. The State of Ohio is an unique blend of news, interviews, talk and analysis, and is broadcast on Ohio's public television stations. The Statehouse News Bureau also produces special programming throughout the year, including the Governor's annual State of the State address to the Ohio General Assembly and a five-part year-end review.
Related Content