Why is it a loophole?
May 30, 2009 | Columbus Dispatch, Ohio, industry, regulation | Comments (0)Ohio payday lenders decided to offer a different service after the rate cap passed last year. It’s not a loophole. From the Columbus Dispatch:
The payday issue lingers because, although the legislature created a lending license with a 28 percent cap, the rate was more restrictive than on other licenses already in law. That all but guaranteed that no payday lender would use the new license; they switched to other licenses that allow for origination fees.
Some lenders also turned out to be more creative than lawmakers expected, issuing checks instead of cash, and then charging fees to cash those checks.
Yea, you wouldn’t want business to be creative, inventing new services, meeting the needs of consumers. It’s not like we’re living in America. Oh, wait, Ohio IS still part of America.
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