COLUMBUS — The Ohio House has passed new restrictions on fees charged by payday lenders, whose interest rates were capped by a law voters approved in 2008.
Critics say the industry is using fees to take advantage of consumers now that it can no longer charge more than 28 percent interest on its short-term loans.
On the House floor, Columbus Democrat Dan Stewart called payday lenders the "crack cocaine of financial institutions" and said the further crackdown was necessary. Opponents of the bill argued that the loans provide an outlet for people of limited means who can't turn to traditional banks.
The measure passed the House 61-37 on Wednesday and now goes to the state Senate, where its future is uncertain. Gov. Ted Strickland supports the legislation.