Strickland signs payday lending law

Filed by Associated Press June 2nd, 2008 in Top Stories.
Print this story
Read comments and discuss this story

COLUMBUS — Gov. Ted Strickland has signed a bill that puts new restrictions on the payday lending industry.

The law signed Monday limits borrowers to four short-term loans a year and caps annual interest rates at 28 percent. The state Legislature passed the bill last month over the objections of industry leaders.

Payday lenders had charged about $15 for every $100 borrowed on a two-week loan, which worked out to an annual interest rate of 391 percent.

Industry leaders argue that the law will force them to close offices and lay off workers.

Strickland, a Democrat, and Republican lawmakers say the loans have trapped customers in a cycle of debt.

 


Print this story
Report an inappropriate comment

In order to comment, you must agree to our user agreement and discussion guidelines.

Need help? Email Us.