Ohio Supreme Court Drops the Ball on Payday Lending

June 16, 2014
   

Ohio’s Supreme Court voted last week to allow payday lenders to skirt legislation capping interest rates at 28% APR, and continue charging triple digit rates, trapping borrowers in a cycle of debt.

Policy liaison Hannah Halbert had this to say about the ruling:

“Payday lending creates a vicious cycle of debt that threatens the financial security of Ohioans and our communities. Today, the Ohio Supreme Court failed to put Ohio consumers first by allowing payday lenders to continue to skirt protections of the Short-Term Lender Act. Policymakers must act to fix the law.”

Read similar concerns voiced by consumer advocates here.

Over the past seven years, Policy Matters Ohio has conducted studies showcasing the adverse impact of the industry on Ohioans.  Check out our research and testimony:

Kalitha Williams’ Testimony: Enforce payday-lender laws and let communities protect residents, May 2014

Keys for Collateral: How auto-title loans have become another vehicle for payday lending in Ohio, December, 2012

Trapped in Debt: The Growth of Payday Lending in Ohio, February 2007

 

 

 

 

 

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