Protecting Ohioans From Predatory Payday Lenders

0

Too many Ohioans fall prey to payday lenders and car titles that trap them in a cycle of debt.

Businesses refuse to pay their employees enough to pay the bills, and the big banks don’t give out small dollar loans to help people with unexpected expenses — so Ohioans are forced to turn to these lenders predators.

These loans subject borrowers to interest rates that regularly exceed 600% and lock them into a downward spiral. More than 75% of loans are granted to borrowers who take out 11 or more loans each year.

That’s why I’m joining a bipartisan group of colleagues to reintroduce legislation protecting all Americans from these debt traps, and this week I held a hearing on our bill, as chairman of the Senate Committee on banks and housing.

Fifteen years ago, we passed the Military Loans Act to cap interest rates on loans to active duty military personnel and their families at 36%.

Our bill, the Fair Credit for Veterans and Consumers Act, would extend these same protections to everyone, limiting interest rates on these small loans to 36% or less.

This would build on the success we had this spring overturning a rule from the previous administration that would have allowed these shady lenders to escape state laws.

States across the country, including Ohio, have recognized the need for these consumer protections and are cracking down. Ohio’s 2019 law limits the interest these predators can charge on certain small loans.

Before Ohio’s law, there were over 650 payday loan or car title shops. That number is down now – because their entire business model was built on the exploitation of people.

The rest of the country needs to follow Ohio’s lead, and we need to strengthen protections for all forms of these loans, because too many Ohioans are still falling through the cracks. We know that the predatory lending industry will exploit any loopholes and use its lobbyists to fight any attempts to contain them.

Ohioans across the state tell us that car title loans are still a big deal. And these loans are particularly harmful because they often deprive people of the only tool they have to repay the loan – if they lose their car, they lose their job.

Our bill would strengthen protections for everyone and protect Americans’ hard-earned money from these predators who rip them off.

.neFileBlock {
bottom margin: 20px;
}
.neFileBlock p {
margin: 0px 0px 0px 0px;
}
.neFileBlock .neFile {
bottom border: 1px dotted #aaa;
bottom padding: 5px;
top padding: 10px;
}
.neFileBlock .neCaption {
font size: 85%;
}

Chestnut

https://www.dailyadvocate.com/wp-content/uploads/sites/34/2021/08/web1_Sherrod-Brown-cmyk.jpgBrown

Share.

Comments are closed.