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Like thousands of Ohioans, Dale Griffin of Toledo lives paycheck to paycheck. And, when unexpected expenses crop up he relies on payday loans to get by. "When you got to borrow money, like you might need that paycheck going on another bill. Then that'll get you along to pay another bill," Griffin says.
But members of the Ohio State Senate say, people like Griffin are getting ripped off by payday company's that charge loan shark-like interest. "They've been trapped in a cycle of debt from which they cannot escape," says Democratic Senator Ray Miller.
So the senate overwhelmingly voted to cap the interest rate payday lenders can charge to just 28-percent.
But because the loans are generally only a couple of weeks long, the payday companies stand to make just penny's from every loan. Not enough, they say, to stay in business.
Many of the more than 16-hundred payday loan companies across the state say, they'll be forced to shudder their doors for good if the bill becomes law, leaving more than 6-thousand people without jobs.
The bill now goes before Governor Ted Strickland, where he's expected to sign it into law.
