The focus is House Bill 545, which was the result of months of deliberations that included standing-room-only committee hearings and Statehouse protests.
Under the former section of Ohio Revised Code, check-cashing lenders could provide loans of $800 or less. They could not make new loans to customers who had outstanding ones, and they could charge interest plus additional origination and other fees, according to the state's Legislative Service commission.
Combined, proponents of the law change say the resulting costs equaled an annual percentage rate close to 400 percent.
Under HB 545, the maximum loan amount would be capped at $500, with repayment terms of at least 30 days. The annual percentage rate charged for such loans would be capped at 28 percent, with no provision for origination fees.
The bill also limits borrowers to four payday loans per year, prohibits them from taking out a new loan to pay off an old one, and requires consumer education courses for those who take out two loans within a three-month period.
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