Ohio lawmaker calls for payday loan lender reforms
COLUMBUS, Ohio -- A Northeast Ohio lawmaker is calling for payday loan reforms on the heels of a report showing lenders here charge higher prices than any other state.
A $300 payday loan in Ohio costs on average $680 in interest over five months, according to research from the Pew Charitable Trusts. Ohio Rep. Marlene Anielski, a Walton Hills Republican, plans to tackle the problem early next year.
One possible solution: following Colorado's lead and requiring all short-term loans to be repayable over a longer time at lower rates. Since Colorado moved to six-month installment loans in 2010, Anielski said, borrowers have saved $40 million a year.
"Reforms we are looking at would still give these consumers wide access to credit, but set rates and payback periods that are fair for borrowers and viable for lenders," Anielski said in a press release.
Read more: http://www.cleveland.com/metro/index.ssf/2016/12/ohio_lawmaker_plans_to_reform.html