Catholic Conference of Ohio
Thursday, July 19, 2018

News & Press - Catholic Conference of Ohio

Ohio Senate Passes Payday Lending Reform

Substitute bill will go to the House for concurrence

Substitute HB 123 passed the Senate by a vote of 21-9.  The Catholic Conference of Ohio joined with other faith communities in calling for the reform of Ohio’s payday lending practices.  Substitute House Bill 123 provides consumer protections consistent with the intent of Ohio’s 2008 Payday Reform Act. This bill will help protect borrowers from excessive payday lending fees while allowing lenders to maintain reasonable cost-of-business fees. 

The Catholic Conference of Ohio supports lending models that provide fair and helpful loans for persons in need. In the teachings of our faith, we have many warnings about usury and exploitation of people.  Lending practices that, intentionally or unintentionally, take unfair advantage of one’s desperate circumstances are unjust. Catholic Social Teaching demands respect for the dignity of persons, preferential concern for the poor and vulnerable, and the pursuit of the common good.  These principles coupled with our teaching on economic justice animate our questioning of current payday lending practices.

Release from Ohioans for Payday Loan Reform

Watch the Senate floor debate

Payday Lending Reform Passes Ohio House

Advocacy Moves to the Senate

 

 HB 123 will help protect borrowers from excessive payday lending fees while allowing lenders to maintain reasonable cost-of-business fees.  The Catholic Conference of Ohio supports passage.

Under the bill:

• Payday lenders would be prevented from operating as credit service organizations or mortgage lenders or under Ohio’s Small Loan Act. 

• A limit on the annual interest rate would be set at 28 percent, plus allowing a monthly 5 percent fee up to $20.

• Monthly payments would be limited to 5 percent of a borrower’s gross monthly income.

 

Action Alert on Payday Lending Legislation

Catholic Conference of Ohio encourages support for HB 123

The Catholic Conference of Ohio supports continued reform of Ohio’s payday lending practices. House Bill 123 provides consumer protections consistent with the intent of Ohio’s 2008 Payday Reform Act. HB 123 will help protect borrowers from excessive payday lending fees while allowing lenders to maintain reasonable cost-of-business fees. Please contact your state Representative and encourage a YES vote.

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