(Akron Beacon-Journal, May 20, 2008) Read any number of reports on consumer finances and you catch the drift that times are tough. The theme is that the net worth of the average American household is not growing as fast as its debt load. In the past decade or so, the average household has accumulated debt faster than its income has grown and has made up for shortfalls with combinations of cash advances, home equity loans and credit cards.

Many borrowers in a pinch have also found a source for quick loans in businesses that for a fee will cash checks or make advances against a borrower's paycheck.

A major rap against these lenders is that together, the business model (high interest rates, currently at 390 percent APR on a $100, two-week loan) and weak state regulations created a perfect vehicle for trapping clients in debt.

A three-year effort led by a coalition of social agencies, churches and consumer advocates to change the laws on payday loans came to a head in recent weeks at the Ohio Statehouse.

In a dramatic shift of support, first legislators in the House in April and then in the Senate last week, overwhelmingly approved the legislation for tighter regulations. Among other changes, the bill would put a 28 percent limit on the interest rate on payday loans.

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