Columbus, Ohio – Governor Ted Strickland today signed House Bill 545, which establishes stricter regulations for short-term lending practices (payday lending) in Ohio.

 

“The bipartisan legislation signed today takes a major step toward protecting Ohio consumers who are already struggling with debt by strictly regulating payday lenders and lowering the maximum interest rate for short-term loans,” Strickland said.  

 

Sponsored by State Representative Chris Widener, HB 545 caps the interest rate for payday loans at 28 percent, reduced from the current annual interest rate of 391 percent.

 

The bill also sets a $500 borrowing limit for consumers and restricts borrowers to four loans per year. Additionally, the legislation extends loan terms to 31 days from 14 days.

 

Strickland today also signed several additional bills recently passed by the Ohio legislature:

 

Senate Bill 150

State Senator Tom Roberts sponsored SB 150, which allows individuals to use a military identification card as proof of the purchaser’s age when buying alcohol. The legislation also revises other state liquor laws.

 

House Bill 405

State Representative Kevin Bacon sponsored HB 405, which eliminates the requirement that each county board of mental retardation and developmental disabilities maintain a service substitution list and long-term service planning registry. The bill also revises the law governing county boards' waiting lists.

 

House Bill 331

State Representative Mark Wagoner (now State Senator) sponsored HB 331, which revises the licensure and regulation of maternity homes and obstetric and newborn care facilities.