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Categories: Consumer and Worker Protection, Corporate Accountability / Workers' Rights, Progress Ohio Announcements
April 25, 2008
Ohio Coalition for Responsible Lending
175 S. Third St. Suite 250
Columbus, Ohio 43215
Dear Ohio Coalition for Responsible Lending:
Members of your coalition have asked where my administration stands on the issues surrounding payday lending, and in particular on a potential interest rate cap. As the debate heightens and the state presses forward with legislative action, I want to be clear with you and your members on my position.
As I travel throughout the state and meet with Ohioans, I am struck by the significant problems that have resulted because of the unfortunate practices of some payday lenders in Ohio. Because of the lending practices of this industry, many Ohioans, often those with the fewest resources, are becoming trapped in a cycle of debt with no end in sight.
The State of Ohio must ensure that payday loans are structured in a way that does not exploit those who are in need. Instead, the state must support lending practices that allow those borrowing to build a future for themselves and their families.
While there is much debate regarding the various ways to address the payday lending problem in Ohio, I believe there is one critical feature of any set of proposals aimed at breaking the cycle of debt-an all inclusive 36% APR rate cap. It is my hope that a bill with such a rate cap is moved through the legislative process, and I would have the opportunity to sign this policy change into law in the near future.
Thank you for your leadership on this issue, and I look forward to working with you and the General Assembly as payday lending legislation continues to be considered.
Sincerely,
Ted Strickland
Governor
