WASHINGTON—The Pew Charitable Trusts today praised the Ohio Senate for passing an amended version of H.B. 123 that includes crucial provisions to balance the interests of consumers and lenders in the state’s high-cost payday loan market. The bipartisan bill cleared the chamber by a 21-9 vote.
Like the version of H.B. 123 that was passed in the Ohio House of Representatives by a 71-17 vote in June, the Senate’s bill contains adjustments that achieve the three mainstays of safe small-dollar lending: lower prices, affordable payments, and reasonable time to repay. Borrowers would continue to have widespread access to credit and could save tens of millions of dollars each year.
Nick Bourke, director of Pew’s consumer finance project, issued the following statement:
“The measure passed in the Senate today is a thoughtful, bipartisan, and fair compromise that builds upon the framework of the House bill. The Senate version provides lenders with more revenue than under the House’s measure while maintaining strong consumer protections that would end practices that harm Ohio families.
“We appreciate the Senate’s hard work in moving this reform forward. We urge the House to pass the Senate bill promptly so that the governor can sign it as quickly as possible. If this legislation becomes law, Ohio will be a national model for well-balanced and fair-minded reform in states that permit payday lending.”
More information on small-dollar loans is available at www.pewtrusts.org/small-loans.
The Pew Charitable Trusts is driven by the power of knowledge to solve today’s most challenging problems. Learn more at www.pewtrusts.org.