Bipartisan bill aims to cut payday loan charges from 391% to 36%

Columbus -- Payday lenders trap customers in a vicious cycle of short-term loans, costing Ohio borrowers $318 million in payday loan fees annually, said a study from a coalition pushing to limit the fees lenders charge.

The study, released Wednesday by the Ohio Coalition for Responsible Lending, comes as one of the first big public salvos in a legislative battle sure to rage at the Statehouse into next spring. The coalition of about 160 religious and community groups backs a bipartisan bill, which will be introduced later this month, with a 36 percent annual percentage rate cap. Payday lenders now can charge up to 391 percent APR.

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