An election proposal to cap payday loan interest rates in Ohio and impose additional regulations on the industry is moving to the next step.
The state electoral authority will examine the “change in consumer protection for short-term loans” on Tuesday. The panel must determine whether the proposed language poses a single problem.
Approval from the board would allow signatures to begin collecting. The Ohio Attorney General approved a petition summary last week.
The Ohio CDC Association, which works to improve neighborhoods, is driving the move forward. The aim is to lower some of the country’s highest short-term loan interest rates by capping them below 28 percent.
Ohio voters approved payday loan limits in 2008, but the industry has figured out ways to bypass those restrictions.
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