Legal Aid of Western Ohio, Inc. (LAWO) is a non-profit regional law firm that provide high quality legal assistance in civil matters to help eligible low-income individuals and groups in western Ohio achieve self reliance, and equal justice and economic opportunity.
New Protections – Payday Loans
In April important new protections for consumers who take our short-term loans, commonly known as payday loans, went into effect. The new laws apply to loans issued after April 27, 2019 and,
- Limit monthly payments on to 6% of the borrower’s gross monthly income
- Cap the annual interest rate at 28% and a maximum monthly fee of 10%, not to exceed $30
- Limit the total interest and fees to 60% of the principal
- Require equal payments consisting of principal, interest, and fees
The new law also requires all lenders to be licensed. Payday lending can lead to an endless cycle of debt for consumers. The new requirements provide important protections for consumers.
For more information on consumer rights, visit the On-Line Self-Help Center at www.legalaidline.org.
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Legal Aid of Western Ohio, Inc.