A citizens group is trying to put an issue on the ballot that would cap the interest rates of payday loans at 28% without any loopholes. The ballot measure is a reaction to lawmakers not taking any action on a pending bill. House leaders say they’re ready to move forward with that bill.
Republican Representative Kirk Schuring of Canton says they’re close to rolling out a revised bill, but it’s unknown how closely it will resemble the current bill to cap interest rates, which have reportedly skyrocketed to 590%.
A so-called loophole, according to payday lending reform advocates, is the use of car titles as leverage. But Schuring says that won’t be addressed in the new language.
“As Rep. Koehler has said many times over, that’s already in the revised code so we’re going to stand by what he has said many, many times over,” said Schuring.
Rep. Kyle Koehler is the Republican sponsor of the bill, and says current law on short term lending outlaws title loans, but those offering those loans aren’t operating under that section of the law.
Ohioans for Payday Loan Reform say closing the credit service organization loophole would handle the problem with auto title loans.