Ohio lawmakers poised to make nation's toughest caps on payday lender rates

4/30/2008

COLUMBUS The Republican-led Ohio House plans Wednesday to approve one of the nation's toughest caps on the storefront payday lending industry in the nation. The plan would limit interest rates on such loans at a stunning 28 percent.

Until Tuesday, when the more restrictive interest rate was announced, the best hope of industry opponents after months of lobbying was a rate cap of 36 percent on the short-term credit payday lenders provide. That figure would have matched the toughest restrictions enacted in other states.

Before the sudden turnaround, a pending House bill had left current interest rates that reach 391 percent untouched.

The payday lending industry's chief lobbyist, Darryl Dever (DEE-vur), says the bill would shutter lending outlets across the state and cost 6,000 jobs.

The bill was scheduled for a House vote on Wednesday before heading to the Senate for consideration.

Read more in later editions of The Blade and toledoblade.com