Tell The Ohio General Assembly 391% Interest is Usury
Today, throughout Ohio, payday lenders exploit more than 300,000 low to moderate income individuals by charging them rates of up to 391% on a typical $300, short term loan.
The payday lending industry traps borrowers into a cycle of debt. The typical borrower takes out some 12.6 loans per year. Meanwhile, increased demands are placed upon our hunger programs and emergency services.
Our state permits these transactions because of a 1995 Ohio law that exempted payday lenders from the state’s usury laws. Tell members of the Ohio General Assembly:
I am concerned about the negative impact of payday lending on family life, our communities and the economy of the State of Ohio.
Lending should help build a future, not destroy it with triple digit interest rates and a downward spiral of debt.
Ohioans should have access to short term, small loans that charge reasonable interest rates and allow for a borrower to make installment payments.
I urge members of the Ohio General Assembly and the Governor to support
• Capping interest rates on small loans at 36% • Establishing a maximum number of loans per customer per calendar year • Providing great incentives for companies licensed under Ohio’s Small Loan Act to offer small cash installment loans of less than $800 as an alternative to payday lending.
Tell The Ohio General Assembly 391% Interest is Usury:
