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I heard from a few payday lenders following my last blog post lauding the Ohio legislature for their passage of a 28% interest rate cap on payday loans. They thought I was being callous to the job loss that would be brought on by the new law. They gave me momentary pause. But then I considered the work of my former colleague , who has moved on to work at the Center for Reposnsible Lending.

The has the CEO of on record as describing the business model as one that strives to transform customers into a “repetitive, long-term customer, because that’s really where the profitiability is.” Well, that may be so but it creates a debt trap that can be difficult for people to get out of.

The action of the Ohio legislature is getting pretty high marks all around the state. Here is the More importanlty, it is serving as a model for others aound the country who seek to limit the debt trap.