Ohio's payday loan law makes borrowing safer and protects consumers from greedy lenders

Written by: Nate Coffman, Guest columnist
Published: March 1, 2022

A little more than three years following the passage of bipartisan payday loan reform, the Ohio Fairness in Lending Act , Ohio consumers have widespread access to safer, more affordable small-dollar loans, according to a recent Ohio Department of Commerce report. 

The landmark legislation has resulted in millions of dollars back in the pockets of consumers each year while preserving access to credit, just as Ohio lawmakers and advocates for reform— of which I was one — intended.

In 2020, the first full year of data reporting after the new law, lenders extended $99.7 million in credit through a quarter million loans.

Prior to reform, Ohio had the worst payday loans in the nation, with interest rates of 600% as common practice. Now the state has some of the strongest consumer protections and lowest prices in the country. Ohio’s law is pointed to as a national model, and bipartisan lawmakers in Virginia and Hawaii have already followed Ohio’s lead.

Full article can be accessed at: https://www.dispatch.com/story/opinion/columns/guest/2022/03/01/nate-coffman-payday-loan-law-protects-consumers-greedy-lenders/6685767001/