Payday lenders can’t win with the media
February 16, 2009 | COHHIO, Cleveland Plain Dealer, Ohio, alternatives, industry, industry critics, media coverage, regulation, states | Comments (0)Ohio lenders are being criticized for complying with Ohio’s new law Short-term Loan Act. Seems fairly ridiculous, but the Cleveland Plain Dealer’s consumer columnist goes on the attack:
By nudging the loan amount to just above $500, lenders can double the loan origination fees from $15 to $30. The Small Loan and Mortgage Lending acts allow the fees on top of the 28 percent interest, something the new law doesn’t permit.
Last year, payday stores gave loans to customers as cash, but this year lenders present loans in the form of checks or money orders, which they then charge additional fees to cash.
What we take away from this story is that Ohioans still need short-term loans and payday lenders are doing their best to provide them.
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