The hardest working man in show business
June 9, 2009 | Ohio, alternatives, industry, regulation | Comments (0)Or, the payday lending business. That would be Larry Meyers who has a new post up at Bloggernewsnetwork regarding Ohio:
Encouraged by the legislature to offer alternative products, the PDLs did exactly that. They are either operating under the Small Loan Act or Mortgage Loan Act. In both cases, the lenders can really only afford to make loans of $300 or less. The permitted origination fees and 26% APR interest hamper their profits, and restrict principal lending ability.
Some lenders, who are also licensed as check cashers, decided to provide the loan proceeds in the form of a check. Others had already done so in the past. Borrowers are given the option as to whether they want to cash the check right there in the store for a fee, or take the check elsewhere. Nothing in these Loan Acts prohibits that practice.
Exactly, why the fuss over payday lenders offering a different service?
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