This is why newspapers are going out of business
February 19, 2009 | Ohio, Toledo Blade, industry, regulation | Comments (1)The Toleda Blade editorial writers confuse smugness with cleverness in yet another rant that payday lenders in Ohio are operating under a different law.
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Once again the Toledo Blade needs to do some homework and gather some facts. The comment about customers frequently don’t have bank accounts is completely false as you are expected to have a checking account to get a loan. Since you have a checking account you can take the lenders check to your bank and get it cashed and avoid any check cashing fee. The lenders that charge a fee charge between 4-6% of the loan amount to cash the check so in the example of a $500 loan that the Blade refers to from the Cleveland Plain Dealer editorial should be about $30 or less not $50. If a lender is charging a $50 fee, that is certainly an exception to the norm. Compare that $17 fee to a $29 NSF fee or a $39 late charge from your credit card company and you can see that this by far a better alternative and you get to pay the loan back over 2 weeks. If you continue to carry your checking account in arrears your bank will charge you a daily NSF fee. After all who is going to lend you $200 for $17.16 in fees without a credit check? Ask the next 10 strangers you pass on the street and I bet you won’t have any one willing to step up and lend you $200.