Situation:
Out-of-state banks were able to charge Ohio customers a usury rate up to the maximum permitted by the State in which they are chartered. Most of these banks have much higher rates than Ohio chartered banks, thus allowing out-of-state competitors an unfair advantage. Several Ohio chartered banks were considering moving their headquarters out of State due to this regulation.

Objective:
Seek an effective legislative solution on behalf of our client to create a level-playing field for Ohio chartered banks. The degree of difficulty was significant, given the impact of allowing interest rate hikes upon lawmakers’ reputation with their constituents.

Outcome:
Credit First National Bank, known more for its branded credit cards for the tire companies, hired KBA to educate the General Assembly on the problem and to suggest language that would allow an Ohio-chartered bank to charge similar rate structures as its competition. KBA was able to lead CFNA in getting a bill unanimously passed by both houses and signed by the Governor.