Ohio legislators to cap interest rates for payday loans. Payday loans can have effective interest rates of up to 391 percent. Such interest rates can lead to bankruptcy. Legislators want to cap annual interest rates at no more than 36 percent, matching federal legislation regulating payday loans to members of the military.
The Ohio Finance Service Centers Association says a cap of 36 percent would put payday lenders out of business.
This entry was posted on Friday, June 8th, 2007 at 11:47 am and is filed under Credit and Bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
A nation of GREED!! I am not opposed to anyone making an honestliving–or even good money–but 391 percent interest on money used for 14 days–or even a month is worse than dealing with loan sharks!!!! I think 36% return on money lent for 14 days is more than adequate!