Rep. Ashford Testifies Before Ohio House On Bill To Reform Payday Lending
House Bill 123 would protect Ohio consumers from predatory lenders
December 01, 2017
 
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State Rep. Michael Ashford (D-Toledo) testified before the House Government Accountability and Oversight Committee Wednesday on House Bill (HB) 123, his plan to reform short-term small loan and mortgage loan laws in Ohio. More than one million Ohioans have taken out short-term loans in the last decade, many repaying more than double the principal borrowed in interest and fees alone.


“Predatory lending is devastating the bottom line for hardworking families in Northwest Ohio and across our state. It’s time to say enough is enough to these unfair practices,” said Ashford. “House Bill 123 will make it easier for borrowers to pay back their loans and will lift the burden on Ohio families so they can get ahead instead of falling further behind.”


Modeled after a similar bill in Colorado, HB 123 would allow short-term lenders to charge a maximum interest rate of 28 percent plus a maintenance fee of up to 20 dollars. Additionally, the legislation would give borrowers extended time to repay their loans in affordable installments, not to exceed 5 percent of the borrower’s paycheck, rather than in the current two week timeframe.


The next hearing on HB 123 has yet to be announced.


 

 
 
 
  
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