Get Out of Debt Guy - Steve Rhode

Ohio Passes Bill to Cut Payday Lender Fees After Spirited Debate

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Some lawmakers argued that the unintended consequences of restricting the interest rate charged by Payday loans would lead to hurt people.

Rep. Bill Coley said, “You’ve got the cart way before the horse,” he said, telling supporters they were being pious by trying to protect people from themselves. “Let’s find an alternative where people can borrow money from before we axe their only line of credit.” Rep. Coley then tried to a procedural move to send the bill back to the committee where he tried to kill the bill just a few weeks before.

The bill moves to restrict payday lenders to charge a maximum of 28%. This new bill would prohibit payday lenders from issuing checks and then charging customers to cash them, and would limit origination and credit-check fees on loans $1,000 or less to once every 90 days.

The opposition claim against the bill was that this legislation would cause the loss of 3,000 jobs in Ohio and people need to continue to have access to high rate payday loans because they have no other place to turn.

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