In his latest rant against the payday lending industry in Ohio, Thomas Suddes argues payday lenders are operating through a loophole. The fact is, while dozens of lenders closed their doors upon passage of the annual rate cap in Ohio, other lenders, instead of laying off employees and turning customers away, began offering different credit products and services- all well within the Ohio lending laws.
In fact, during the legislative debate concerning payday lending, lenders were urged to apply for licenses to operate under Ohio’s Small Loan or Mortgage Loan Act and encouraged to come up with new credit products to service the growing consumer demand for short-term, small-dollar loans. This is exactly what lenders are doing- operating under the Small Loan or the Mortgage Loan Act, both which have been part of Ohio law for thirty years.
Now that’s a face for radio
The Ben Franklin look went out about 200 plus years ago.I do notice how he trys to be slick saying the industry told the politicians that they would operate under different laws to stay in business.NO the industry were incouraged to operate under these laws.Bill Faith even said that the industry could still stay in business in Ohio under the small loan act or the mortgage loan act.Now these laws that have been on the books for 30 years are now considered loopholes.These advocacy groups and politicians against the indusrty told voters that the indusrty could survive under these new laws.They have lied to voters,because there goal has always been run out the nontraditional banking option.Lets face it our industry is in the fight of it’s life because our new government wants bank rule.We are the scape goat for the banks,who dont have to answer to any one! now they can elimanate there competition through regulation.What else can we give them?Dont know but they can keep old Ben up there