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Home / OH: House Speaker Sees Support For Rate CapOH: House Speaker Sees Support For Rate Cap
Last Updated on Thursday, 10 April 2008 11:38 Written by rslcpol Thursday, 10 April 2008 11:38
House Speaker Jon Husted said yesterday that he senses growing support in his caucus for a lower interest-rate cap on payday lenders, and he wants a bill passed within two weeks.It’s the first acknowledgement by a Republican House leader that support exists for a rate cap — the most contentious issue in the debate over how to regulate the short-term, high-interest loan industry.
Payday officials say that a 36 percent annual rate cap, as proposed in House Bill 333, would let them charge less than $1.50 per $100 borrowed, putting them out of business quickly. Industry critics say the current 391 percent annual rate (about $15 per $100 borrowed on a two-week loan) is outrageous and predatory.