Payday lending law that took effect 5 years ago has saved Ohioans $300 million in interest, fees, advocates say

Written by: Laura Hancock, Cleveland.com
Published: April 16, 2024

COLUMBUS, Ohio – If an Ohioan borrowed $500 from a payday lender five years ago, the interest and fees piled up to a total average repayment of $1,180. Today, that same loan would cost a total of $595 on average, advocates say.

The advocates – a loose coalition of faith leaders, AARP Ohio, the Ohio Poverty Law Center and others known as Ohioans for Payday Loan Reform – gathered at the Ohio Statehouse on Tuesday to celebrate five years since 2018’s House Bill 123 went into full effect.

The Ohio Fairness in Lending Act capped interest rates at 28% and monthly fees at $30. Former state Reps. Kyle Koehler, a Springfield Republican now running for state Senate, and Michael Ashford, a Toledo Democrat, sponsored the bill.

Ohioans have saved over $300 million in fees and interest since April 27, 2019, when the final parts of the law went into effect, according to an analysis of Ohio Department of Commerce data conducted by one of the law’s advocates, the Ohio CDC Association, which works on community economic vitality.

Full article can be accessed at:
https://www.cleveland.com/news/2024/04/payday-lending-law-that-took-effect-5-years-ago-has-saved-ohioans-300-million-in-interest-fees-advocates-say.html#:~:text=Ohioans%20have%20saved%20over%20%24300,works%20on%20community%20economic%20vitality.