COLUMBUS, Ohio – Ohio joined the growing list of states restricting payday lending yesterday, when Gov. Ted Strickland signed legislation to limit the annual rates on the short-term loans at 28%.
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The new law also limits a borrower to four loans per year and sets a minimum maturity of 31 days.
Under the old system, fees for payday loans usually were $15 for every $100 borrowed for two weeks, which calculates to an annual percentage rate of 391%.
Passage of the Ohio law follows last month’s enactment of a payday cap in New Hampshire of 32%. Several other states are debating similar curbs.
