Crucial consumer protections headed to governor's desk, says Rep. Sykes

State Rep. Emilia Sykes (D-Akron) today applauded the passage of House Bill (HB) 123, a bipartisan effort to enact consumer protections for the thousands of Ohioans who utilize short-term loans every day. Borrowers in Ohio currently pay some of the highest rates in the nation for payday loans, with estimated average interest rates at over 500 percent.

“Working families who struggle to put food on the table or gas in the tank will benefit from this long overdue reform,” said Sykes. “These commonsense consumer protections were a long time coming, and Ohioans will now have the peace of mind of knowing that when they apply for a short-term loan, they will be getting a fair deal.”

Under HB 123, borrowers would have more time to pay back loans, and monthly payments would not exceed seven percent of monthly net income. The bill also prohibits interest and fees from exceeding 60 percent of the original loan principal.

The bill’s swift passage comes amid allegations of corruption and criminal activity at the Statehouse. Former House Speaker Cliff Rosenberger (R-Clarksville) resigned his office in April after reports surfaced the GOP lawmaker had taken illegal money from payday lending lobbyists for overseas trips.

The FBI has since launched an investigation into the alleged activity, raiding the former speaker’s office, home and personal storage unit earlier this year. Rosenberger is the first speaker in Ohio history to resign while under federal criminal investigation. The scope of the ongoing criminal probe is not yet known

After passing the House by a vote of 60-24, HB 123 moves to the governor’s desk to be signed into law.