COLUMBUS, Ohio (BP) вЂ” OhioвЂ™s new legislation managing payday lending is definitely an crucial advance, however the church plays an important role in assisting individuals who frequently become casualties of this predatory industry, Southern Baptist pastor David Gray states.
Gov. John Kasich finalized into legislation July 30 just what some advocates have actually called a model for the united states in handling abuses by loan providers whom usually draw the indegent as a financial obligation trap by recharging excessive, and sometimes deceptive, rates of interest.
A lender may portray an interest rate as 15 percent, but it actually is only for a two-week period until a personвЂ™s next payday in the industry. The yearly rate of interest in payday lending typically is approximately 400 %, which makes it exceedingly hard for the debtor to settle the mortgage. Read more