The bill, which is expected to clear a House committee today and possibly hit the floor for a vote, was a sudden reversal in policy on the rate cap and appeared to be an effort to trump Gov. Ted Strickland.
On Friday, Strickland issued a letter to the Coalition for Responsible Lending stating it was critical that any payday lending bill would have an all-inclusive 36 percent rate cap.
State Rep. Chris Widener, R-Springfield, introduced legislation Tuesday that includes the 28 percent annual rate cap, bans any other fees and stops someone from having more than two loans at one time.
The bill also limits the total loan amount to $500, gives borrowers a minimum of 31 days to repay, mandates financial counseling for anyone seeking a third loan and prohibits anyone from having more than four loans in one year.
Read More
