States of Innovation: Small Loans, Large Cost

Stat: 12 million: The number of Americans who use payday loans each year.

Story: Payday loans can help people facing an unexpected financial crunch—but can also bring unexpected problems. Ohio adopted an innovative new law to protect consumers who were being dragged into a cycle of debt by the very loans they thought would help them. We learn more from Nick Bourke, who directs Pew’s consumer finance work, and Pastor Carl Ruby, who saw the downside to the loans and helped lead the fight to change the law.

Related resources:

Pew Applauds Virginia for Protecting Borrowers, Reforming Small-Dollar Loan Laws

A Wealth of Evidence Backs High-Cost Loan Reform

Virginia’s Payday and Title Lending Markets Among the Nation’s Riskiest

How Ohio Brought Fairness to Payday Loans

Ohio a National Model for Payday Loan Reform

States of Innovation