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Crucial Consumer Protections Headed to Governor’s Desk
Payday lending reform passes amid FBI probe into alleged GOP
corruption at the Statehouse
Special to The Truth
House Democrats last week applauded the passage of House
Bill (HB) 123, a bipartisan effort to enact consumer
protections for the thousands of Ohioans who utilize
short-term loans every day. Borrowers in Ohio currently pay
some of the highest rates in the nation for payday loans,
with estimated average interest rates at over 500 percent.
“HB 123 provides a fix to a loophole that has allowed
predatory lenders to rig the system against working
Ohioans,” said state Rep. Michael Ashford (D-Toledo), one of
the bill’s joint sponsors. “These protections put money back
into the pockets of consumers and gives them a chance to get
a fair deal for an opportunity to get ahead.”
Under HB 123, borrowers would have more time to pay back
loans, and monthly payments would not exceed seven percent
of monthly net income. The bill also prohibits interest and
fees from exceeding 60 percent of the original loan
principal and prohibits lenders from making harassing phone
calls to borrowers.
“Working families who struggle to put food on the table or
gas in the tank will benefit from this long overdue reform,”
said House Minority Whip Emilia Sykes (D-Akron). “These
commonsense consumer protections were a long time coming,
and Ohioans will now have the peace of mind of knowing that
when they apply for a short-term loan, they will be getting
a fair deal.”
The bill’s swift passage comes amid allegations of
corruption and criminal activity at the Statehouse. Former
House Speaker Cliff Rosenberger (R-Clarksville) resigned his
office in April after reports surfaced the GOP lawmaker had
taken illegal money from payday lending lobbyists for
overseas trips.
“Payday lending reform is long overdue, but it concerns me
that it took an FBI investigation into alleged criminal
corruption at the Statehouse to get this bill moving,” said
Assistant Minority Leader Nick Celebrezze (D-Parma).
“Questions remain, and Ohio taxpayers deserve answers to
know who is really calling the shots in Columbus.”
The FBI has since launched an investigation into the alleged
activity, raiding the former speaker’s office, home and
personal storage unit earlier this year. Rosenberger is the
first speaker in Ohio history to resign while under federal
criminal investigation. The scope of the ongoing criminal
probe is not yet known
After passing the House by a vote of 60-24, HB 123 moves to
the governor’s desk to be signed into law.
Here is what other state lawmakers are saying about the
passage of HB 123:
“Taking on unfair practices and cracking down on predatory
lenders ensure Ohio consumers are getting a fair deal,” said
state Rep. John Patterson (D-Jefferson). “This bill is a
step in the right direction to close legal loopholes that
have cost Ohioans for over a decade.”
“These reforms come on the heels of the suffering of our
communities, as more and more people die from drug overdose
and families struggle to get by,” said state Rep. Teresa
Fedor (D-Toledo). “I am happy to see the General Assembly
agree on a version of the bill which will prevent predatory
lenders from taking advantage of Ohioans in their most
vulnerable times.”
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