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Columbus, Ohio — UNC Center for Community Capital researchers testified May 14 before the Ohio Senate that North Carolinians did not miss payday lending after it was de-authorized in the state. The next day, Ohio legislators voted to drastically curtail payday lending.

“We found that the vast majority of North Carolinians felt payday lending was a bad thing and don’t miss it,” Center research assistant Kim R. Manturuk told members of the Ohio Senate Finance Committee at the May 14 hearing.

On May 15, the Ohio Senate voted 29-4 to pass House Bill 545, reducing annual interest rates that typically exceed 300 percent to a cap of 28 percent. The bill returns to the House for an expected concurrence. Ohio Gov. Ted Strickland is expected to sign the bill later this month.

Manturuk and Center associate director Janneke Ratcliffe testified as interested parties on the results of research they conducted for the N.C. Office of the Commissioner of Banks. That study, “North Carolina Consumers After Payday Lending: Attitudes and Experiences with Credit Options,” examined how low- and moderate-income households have managed financial hardships since payday lending ended in North Carolina and their attitudes toward the available options to manage those hardships.

“Among households who feel they have been affected by de-authorization, most say they are better off now,” Manturuk said. “We also found that the de-authorization of payday lending has not curtailed the availability of credit for working families in our state, and most families are aware of a wide range of options for managing financial shortfalls.”

The Center’s study found that almost nine out of 10 low- and middle-income respondents thought payday lending was a bad thing. This overwhelmingly negative perception was consistent even for households that had experienced a recent financial shortfall.

View the complete testimony.

Consumer credit is a key area of research and analysis for the UNC Center for Community Capital, the leading center for research and policy analysis on the transformative power of capital on households and communities in the United States. The Center’s in-depth analyses help policymakers, advocates and the private sector find sustainable ways to expand economic opportunity to more people, more effectively. For more information, visit

Topics(s): Consumer Protections, Debt & Credit, Financial Inclusion, Other, Testimony
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