Payday Loan Reforms in Ohio

Lenders always charge interest, but payday lenders recover many times the principle in fees and interest on small loans to people who are just trying to make ends meet. More than 58% of payday borrowers have trouble meeting their monthly bills with their paychecks. In 2018, legislators in Ohio acknowledged the need to reform payday lending practices and voted to protect low-income Ohioans from exorbitant interest rates and other unfair practices common in Ohio. A bi-partisan bill prohibits auto-title loans, limits loans to $1,000 and 12-months, and restricts interest and fees to no more than 60 percent of the principal and became effective in April of 2019.

Read more about how Ohio got it right.