“Thwart” again
April 16, 2009 | Bill Faith, COHHIO, Ohio, industry, media coverage, regulation, states | Comments (0)Two weeks ago an AP headline said lenders were “thwarting” federal legislation. Legislation that would put the industry out of business. Now the New York Times says the industry “thwarts” Ohio laws. Certainly a new record for the use of the word “thwart” in headlines. From the story:
An Ohio law intended to cap interest rates on payday loans at 28 percent has been thwarted by lenders who have found ways to charge up to 680 percent interest, according to lawmakers who are preparing a second round of legislation.
The law, the Short-Term Loan Act, was enacted last spring and upheld in a statewide referendum in November. It decreased the maximum annual interest rate to 28 percent, from the previous 391 percent. Loans typically had terms of two weeks and were secured by a postdated check and proof of employment.
But more than 1,000 stores have obtained licenses to issue short-term loans under different laws that permit higher rates, according to a report by the Housing Research and Advocacy Center in Cleveland, which has worked to lower interest rates.
So lenders got legitimate licenses issued by the state to offer a different kind of product. It goes to show that there is no pleasing so-called “consumer” groups. They want stores to close, period.
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