“We are up against power and we’re up against an industry that has a lot of money to spend,” Ruby said. “But we have the moral argument.”
The proposed constitutional amendment mirrors reforms included in House Bill 123, sponsored by state Rep. Kyle Koehler, R-Springfield. Both call for a 28 percent APR cap and limit monthly fees at $20. The ballot issue would also extend payback time for loans to up to 180 days.
House Bill 123 was introduced on March 9, 2017.
Related: Bill to limit payday lending practices stalls in Ohio House
Ohio Consumer Lenders Association opposes House Bill 123, saying government shouldn’t restrict the private-sector lending options.
Typically with payday loans, consumers borrow $100 to about $1,500 and must pay it back within 30 days, either through a post-dated check or automatic withdrawal. They pay interest and fees that can boost the annual percentage rate above 400 percent. Often, borrowers can’t make the full payment when it comes due, so they extend the loan, accruing more interest and fees.