This whole rate cap issue has become a great tool for politicians to hang their hat on. Did anyone tell them that the people who are happiest about this, do not use payday loans or do not want to pay them back.
Ask people who use the product point blank. Would it bother you, if they took the payday loan option away? I bet most would say, yes.
Here is what I read here:
“State Rep. Tyrone Yates (D-Cincinnati) would appreciate some measure of credit for the 28% interest rate cap imposed by the new payday lending bill, HB 545. He points out in a press release that it is closer to his proposed 25% rate cap than to the 36% limit sought by others. “My colleagues have joined me in offering strong reform for this predatory industry,” said Rep. Yates in a press release that characterizes the new bill as drawing upon his own. “We have come together, Democrats and Republicans, agencies and non-profit groups, legislative and executive branches to do the responsible thing for Ohio’s consumers and pass a bill that will be a model for the nation.”
These politicians are just trying to score points. They’re not getting into the real issue. There is a huge credit gap beyond 36%
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