Monday, Jun 18, 2018
One of America's Great Newspapers ~ Toledo, Ohio


Ohio justices: Payday loans unaffected by 2008 law

COLUMBUS -- The Ohio Supreme Court today upheld the ability of payday lenders to avoid a law reforming short-term loans and, under another section of state law, continue making what critics denounce as predatory loans to low-income Ohioans.

A 2008 law restricted payday-loan interest rates to 28 percent and imposed a $500 maximum loan limit and minimum 31-day payback period to curb what consumer advocates attacked as abuses.

Payday lenders then began making short-term loans under another section of law, the Mortgage Loan Act, that contains no cap on interest rates and in which loan repayment can be demanded in a single lump sum.

An appeals court then ruled that the loan law does not permit single-installment loans and that Ohio lawmakers intended to prohibit short-term loans that did not comply with the 2008 law, the Short Term Loan Act.

In a unanimous decision, the Ohio Supreme Court today reversed the appellate court ruling, finding that the mortgage-related loan law does not prohibit what is effectively payday lending.

The court’s ruling came in an appeal from Ohio Neighborhood Finance Inc., doing business as Cashland, in a case in which it sued an Elyria man for failing to repay a $500, two-week loan with an annual-interest rate of 235 percent.

To read the rest of this article, visit

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2018 Toledo Blade

To Top

Fetching stories…