Policy Matters has conducted research on payday lending in Ohio for the last four years. Our initial research found that the payday lending industry grew from just over 100 stores in the mid‐1990s to more than 1,600 stores in 2007. Stores were present in 86 of Ohio’s 88 counties. Our concern with Ohio’s prior Check Cashing Lending Law, legalizing payday lending in 1996, was that lenders could charge an annual percentage rate (APR) of 391%, $15 for every $100 borrowed. Our research found that a basic family budget for families making under $45,000 a year would leave them ill‐equipped to pay back a payday loan given the short time frame and high cost of the loan. ...

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