COLUMBUS, Ohio (12/7/11)--Ohio-chartered credit unions, banks, savings banks, and savings and loan associations could assess the same interest, fees and other charges that out-of-state financial institutions assess Ohio consumers, if recently introduced legislation becomes state law.
Under the bill, Ohio-chartered financial institutions would not be subject to Ohio laws limiting interest, fees and other charges, said the Ohio Credit Union League (e-Lumination newsletter Nov. 30).
Senate Bill 218/House Bill 322, sponsored by State Sen. Bill Coley (R-Middletown), are pending in the Ohio General Assembly's Senate Financial Institutions Committee and House Financial Institutions, Housing and Urban Development Committee, respectively.
Similar legislation has been introduced in the past, most notably addressing credit card interest rates, the league added.
The league continues to monitor the process. It has emphasized the need for the legislation, and expressed concern that "Most Favored Lender" status only applies to each respective out-of-state institution, instead of an all-encompassing application for all lenders.