On February 23, 2026, the Ohio State Legislature passed a new banking law aimed at enhancing consumer protections and regulating the financial services industry. The bill, known as the Consumer Financial Protection Act, was introduced in response to a series of high-profile scandals involving predatory lending practices and fraudulent banking activities.One key provision of the new law is the establishment of a state-wide Consumer Financial Protection Bureau, tasked with investigating and prosecuting financial institutions that engage in deceptive or abusive practices. The bureau will have the authority to levy fines and penalties on offending companies, as well as to provide restitution to affected consumers.Additionally, the law includes strict guidelines for the licensing and operation of payday lenders and other alternative financial service providers. These regulations are designed to prevent the exploitation of vulnerable populations by imposing limits on interest rates and fees, as well as requiring lenders to disclose all terms and conditions of their loans in a clear and transparent manner.Furthermore, the Consumer Financial Protection Act mandates the implementation of stronger data security measures to safeguard consumers’ sensitive financial information. Under the new law, banks and other financial institutions will be required to adopt enhanced encryption protocols and cybersecurity measures to prevent data breaches and identity theft.The passage of the Consumer Financial Protection Act represents a significant victory for consumer advocates and lawmakers who have long pushed for stricter regulations on the financial services industry. Supporters of the bill argue that it will help to level the playing field between financial institutions and consumers, while also bolstering the state’s economy by promoting fair and transparent banking practices.Governor Samantha Johnson hailed the passage of the new banking law as a “historic achievement” for Ohio, emphasizing the importance of protecting consumers from unscrupulous financial practices. She praised the bipartisan effort that led to the bill’s successful passage and vowed to enforce its provisions rigorously to ensure that Ohioans are given the financial protections they deserve.Overall, the Consumer Financial Protection Act represents a major step forward in reforming Ohio’s banking industry and promoting greater accountability and transparency among financial institutions. Lawmakers hope that the new regulations will set a precedent for other states to follow in safeguarding consumers’ rights and fostering a more equitable financial system.