Ohio Senator Sherrod Brown asks the Consumer Financial Protection Bureau to Expand Payday Lending Rules
In response to last week’s decision by the Ohio Supreme Court (see last post “Payday Lender Loophole Upheld by the Ohio Supreme Court”), Senator Sherrod Brown has sent a letter to the CFPB. Senator Brown is asking the Bureau to create more broad rules regulating the entire payday lending industry, covering national online payday lenders, lenders conducting auto-title loans and installment loans. All of these types of loans carry triple digit interest rates, and are able to avoid Ohio’s Short Term Lending Act (particularly in light of the Ohio Supreme Court’s decision). The CFPB has indicated it is now carefully drafting rules applicable to such lenders to avoid these “loopholes” in the future.