HB 123 is floating around. It’s unlikely that in it’s current form it could pass. House Bill 123 would allow short-term lenders to charge a 28 percent interest rate plus a monthly 5 percent fee on the first $400 loaned — a $20 maximum rate. Required monthly payments could not exceed 5 percent of a borrower’s gross monthly income.
Speaker Pro Tem Kirk Schuring is recommending these changes.
- Refusing a new loan if a borrower has an active loan
- Requiring a three-day waiting period before taking a new loan
- Allowing a three-day right-to-rescind a loan
- Creating a payment plan through interest free payments
It’s hard to say what will happen. A group is trying to get this on the ballot as a way to get around the legislative process. This rarely works out for lenders because it’s people throwing their opinion around when it does not affect them.
You can read more in the Columbus Dispatch, “As Ohio payday lending law fails, some lawmakers ready for new regulations.”
