First reports of store closings reported on WLWT:

As promised, at least one payday lender is closing stores in Ohio after voters failed to repeal a measure cutting the interest the lenders can charge.

Cash America International, Inc., said Wednesday that it would close 43 Cashland locations, laying off about 150 people.

 

“We respect the democratic process and thank the voters who came out to the polls to support the cash advance product,” said company president Daniel R. Feehan in a news release. “This was a hard-fought loss for the industry, but more importantly it will hurt consumers who have nowhere else to turn for short-term credit.

 

Issue 6 attempted to repeal House Bill 545, which calls for an annual rate cap of 28 percent instead of the 391 percent previously allowed. The new law reduces the fee charged on a $100 two-week loan to $1.08 from $15.

 

“There is no way to sustain a viable storefront business by offering small, short-term unsecured consumer credit at this rate,” Feehan said.

 

About 6,000 people are employed by payday lenders in Ohio.