Group targets payday lenders - Dayton Daily News (subscription)- Loans With Outstanding Payday Loans
The best way to end the payday lending trap for low-income borrowers is to enforce a interest rate cap of 36 percent, the Center for Responsible Lending said in a study released Thursday. It would limit bounced check fees to one per loan, require lenders to offer extended payment plans and establish a task force to study how banks and credit unions should make loans to people with bad credit. Tyrone Yates, D-Cincinnati, is sponsoring House Bill 358, which would limit interest rates to 25 percent APR, prohibit additional loan origination fees and limit bounced check fees to one per loan. Bill Batchelder, R-Medina, and Bob Hagan, D-Youngstown, are sponsoring House Bill 333, which would adopt the 36 percent APR cap recommended by the Center for Responsible Lending. It would also prohibit loan origination fees, limit bounced check fees to one per loan, ban loans to borrowers with outstanding loans with any other check-cashing business in Ohio, and create a statewide database lenders must check before issuing new loans. King found that in states with weaker regulations, 60 percent of payday loans go to borrowers with 12 or more transactions per year and nearly 90 percent of repeat payday loans are made shortly after a loan was paid off. Learn more
No Tags