New laws could be coming for customer loans in Ohio
State Sen. Louis Terhar, R-Cincinnati, pitches the latest “Consumer Installment Loan Act” in an effort to modernize Ohio’s banking and financing regulations and provide borrowers and loan providers alike more quality.
But Kalitha Williams of Policy issues Ohio, a liberal leaning think tank, seems a bell that is warning telling lawmakers that the work will cause greater costs, exploitation and a loss in appropriate protections for customers.
Senate Bill 24 sailed through the Ohio Senate on Tuesday, finding an unanimous vote and perhaps perhaps not just a peep of debate.
“It’s troubling that a bit of legislation that renders Ohio customers vulnerable could go through with little to no opposition, ” Williams told this magazine.
In her own testimony, Williams said the work would eliminate defenses against abusive commercial collection agency techniques and enable a $25 cost for credit investigations — well over the ten dollars cost for the service that is same another state statute.
Ohio legislation banned payday advances for over 50 years however in 1995 the Legislature authorized the unsecured guarantor loan Act, which calls for state certification and exempts payday loan providers from the state’s laws that are usury. That generated explosive development in storefront lenders issuing high-cost payday advances.