Bill to close loophole for payday lenders

COLUMBUS — Legislation being introduced at the Ohio Statehouse is aimed at stopping former payday lenders from using a loopholes in state law to charge high rates on short-term loans.

Rep. Matt Lundy, a Democrat from Elyria, plans to offer the bill this week, with hopes that it will pass before lawmakers break for the summer.

Legislation passed by lawmakers and signed by the governor last year was supposed to cap the annual percentage rate charged on short-term loans at 28 percent.

The new law also limited the number of loans that could be issued to individual borrowers, prohibited obtaining new loans to pay off old ones and require consumer education courses for repeat borrowers.

But a study released in March by the Housing Research and Advocacy Center, a Cleveland nonprofit agency, stated that there were more than 1,000 payday lenders still doing business in Ohio and offering short-term loans at inflated rates.

For the complete story, see Wednesday’s Vindicator and Vindy.com.