A House committee voted 9-1 in favor of the bill, sponsored by state Rep. Kyle Koehler, R-Springfield, that would rein in abusive practices across the industry. State Rep. Bill Seitz, R-Cincinnati, was the sole no vote. House Speaker Pro Tempore Kirk Schuring, R-Canton, has said the bill will get a floor vote in May.
“It’s never too late to do the right thing,” Koehler said.
Ted Saunders, head of CheckSmart, which has 94 payday lending shops in Ohio, called the bill “unworkable” and would lead to restricted credit and job losses in the industry.
Related: Ohio House speaker steps down amid federal probe
A decade ago, Ohioans voted by nearly a 2 to 1 margin in favor of capping payday loans at 28 percent APR. But payday lenders sidestepped the limits in place since 2008 by issuing loans under other sections of Ohio law. The result is that borrowers are paying annual interest rates of up to 591 percent — the highest in the nation according to some researchers.
The bill has faced a pitched battle: the measure stalled for more than a year but came alive after Rosenberger stepped down amid a federal investigation that sources say is tied to his travel with payday lending lobbyists.
Last week, the committee balked at taking action. This week, it eschewed efforts to weaken the bill and passed it as Koehler originally wanted it.
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