Legislators working across the aisle seems fairly rare these days — our government is ostensibly split down the middle; which is why it is so exciting to see Bipartisan action on a singular issue.
The issue at hand? The Payday Loan Industry, a ruthless loaning industry that makes a killing in fees and interest on the relatively small loans high risk clients would take out. Because of the high risk nature of these loans (among other things) the interest rates and fees are astronomical, especially in Ohio.
The payday loan is very simple, it is a way for consumers to “borrow” cash against their upcoming paycheck and serves a useful purpose to help alleviate the stress for those living paycheck to paycheck. The problem is the APR for Ohio lenders is 591%, which is the highest in the nation.
You need a $300 loan? That’s going to cost you $680 in fees over five months according to Pew Charitable Trusts.
To read more about the Payday Loans and how they’re stacked against the consumer with insane APR and fees, check out The Dispatch’s full article.