Posted April 14, 201810:42 am
Opponents of the payday lending industry in Ohio have been waiting a long time for regulatory reform that would make those loans more affordable and cap annual percentage rates that have reached as high as 790%.
To the dismay of groups like Ohioans for Payday Loan Reform — which wants a strict 28% cap on interest rates and the closing of loopholes that allow payday lenders to charge a series of fees that amount to the exorbitant rates — they're still waiting.
Payday lending groups indicate they're open to new regulations on how they do business in the state, but virtually no progress has been made since HB 123, a bill designed to do just that, was introduced in March 2017.
"There hasn't been any significant movement in the many months that bill's been pending," said Katherine Hollingsworth, managing attorney of the consumer practice group for the nonprofit Legal Aid Society of Cleveland, which represents some borrowers when payday and auto title lenders threaten to sue them or repossess their cars. "From the advocates perspective, there is certainly frustration that there hasn't been movement."
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