How Ohio Solved Payday Loan Reform

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For years, Ohio had the most expensive payday loans in the nation –  lenders charged Ohio consumers up to four times more than they charged in other states. Borrowers who signed up for two weeks of credit were saddled with long-term high-cost debt.

Thanks to a bipartisan coalition, the state passed legislation in 2018 balancing the needs of borrowers and lenders. As other states grapple with how to appropriately govern the marketplace for small loans, Ohio’s approach holds promise for the 12 million Americans who use payday loans each year.

In this video, explore how unaffordable payday loans negatively affected the lives of Ohioans—and how the state passed landmark reforms that ensured access to affordable lower-cost credit and saved families more than $75 million each year.

Learn more about Pew’s work to help state lawmakers craft policies for a fair, safe, and affordable small-dollar loan marketplace at

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