How Ohio Solved Payday Loan Reform
For years, Ohio had the most expensive payday loans in the nation. Lenders charged Ohio consumers up to four times more than they did in other states, leaving borrowers who signed up for two weeks of credit saddled with long-term, high-cost debt. "I thought I was getting help … I ended up paying around $3,000 or so for an original loan of between $700-800," said military veteran Derek Drewery of his experience with payday loans. 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. "I think we'll be looked at by the rest of the country as a really pragmatic way to go about [payday loan reform]," said Doug Fecher of Ohio's Wright-Patt Credit Union. 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 payday loan reform here: http://pewtrusts.org/paydayreform
For years, Ohio had the most expensive payday loans in the nation. Lenders charged Ohio consumers up to four times more than they did in other states, leaving borrowers who signed up for two weeks of credit saddled with long-term, high-cost debt. "I thought I was getting help … I ended up paying around $3,000 or so for an original loan of between $700-800," said military veteran Derek Drewery of his experience with payday loans. 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. "I think we'll be looked at by the rest of the country as a really pragmatic way to go about [payday loan reform]," said Doug Fecher of Ohio's Wright-Patt Credit Union. 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 payday loan reform here: http://pewtrusts.org/paydayreform