Advocates Want Better Protections Against 'Predatory' Payday Lending
Faith leaders and advocates for the poor are calling on the federal government to do something to reform payday lending.
An advocate for the homeless in Central Ohio says Ohio’s laws that crack down on payday lenders have been ineffective at curbing some of the predatory lending practices. Bill Faith says payday lenders are finding ways to get around those new laws by using other areas of Ohio’s lending laws.
“They have exploited those loopholes and we have tried multiple ways to close those loopholes,” he said.
Faith is calling on the federal government to set new standards for payday loans based on the borrower’s ability to repay them. A spokesperson for the Ohio Consumer Lenders Association, Patrick Crowley, says payday lenders serve Ohioans who cannot use banks. And he says they also help Ohio’s economy in general.
“Our industry puts nearly a billion dollars into the state’s economy and employs the equivalent of almost 11,000 people,” Crowley said.
Crowley says payday industry leader want to work with the federal government as it comes up with guidelines.