Ohio storefront lenders sue record amount of borrowers
Date: Fri, 01/04/2008 - 12:22
Ohio Sees Record Amount of Payday Loan Suits
Civil lawsuits over payday loans are clogging local- and state-level courts in record numbers in Ohio. The fast cash loan battleground state, which may just be the site of a new cash advance prohibition in the New Year if the many opponents of cash advance lending have their way, currently is home to payday loan interest rates that are quite high. On average, Ohio consumers pay fifteen dollars of interest per one hundred borrowed, with maximum loan amounts of eight hundred dollars. One of the most controversial aspects pf these short-term personal loans are rollovers, in which borrowers extend their loans by an additional term, in exchange for another finance fee. Because payday loan “flipping†and concurrent loans are both currently legal, these loans can be quite expensive in the long run.
A natural consequence of payday loans’ cost, especially in conjunction with their historical ties to the sub-prime consumer lending market, is the high rate of delinquency and default on these personal loans. Fast cash loans are tied to a post-dated check that the borrower makes out to the order of the cash advance lender for the amount of the loan, plus interest. The consumer can either “buy back†the check with a cash repayment at the end of the loan’s term, or the lender cashes the check. If that check bounces, the lender will often sue the borrower in civil court.
Over the last six years, a single payday loan business (First Check Cash Advance, in Mount Vernon) filed four hundred eleven of these suits all by themselves. These cash advance loan cases often end up in civil courts, as the amounts of the delinquent loans are not as high as the cut-offs for criminal charges. [/quote]
Thanks for the info goudah. Have you seen any articles as to wh
Thanks for the info goudah. Have you seen any articles as to what the outcome of the suits have been?
Well, the loans are legal, so I would assume the outcome has bee
Well, the loans are legal, so I would assume the outcome has been jdugements against the borrowers, followed by garnishments and such.
Here is a link to a related story regarding the first hearings i
Here is a link to a related story regarding the first hearings in Ohio towards regulation and the reaction of the readers.
http://www.wksu.org/news/story/21667
Yeah, it's not cool, and I don't want to scare anyone, but store
Yeah, it's not cool, and I don't want to scare anyone, but storefronts need to be dealt with differently then internet loans. You can't ignore them and hope they go away . . . .
Thanks for the link frog!! I had thought about going to a store
Thanks for the link frog!! I had thought about going to a storefront location. After reading everything on the site...I'm so glad that I didn't. No idea what kind of mess I'd be dealing with if I had.
I still owe to a storefront here in Florida and they are very ea
I still owe to a storefront here in Florida and they are very easy to work with because there is model legislation that was enacted a few years ago regarding them. They give you every possible opportunity to pay whatever you can within reason. The employees are polite and never try to pressure you. They allow only one loan per person at one time. All the storefronts are connected to a database that will tell them if a person has a loan with another institution. If they do, no loan. The cap is 10.00 per hundred. Other states should use Florida as a model for their laws.
I agree - Florida is really where all the responsible lenders se
I agree - Florida is really where all the responsible lenders seem to be located. I hear only good things about Amscot . . . . .
Amscot called me at work today! I said I could not talk from her
Amscot called me at work today! I said I could not talk from here and she said. "No problem, I will try to reach you at home if that is OK?" I said thats fine but I will try to reach out to you first. She said "thank you" and hung up.
They also offer free money orders and reasonable check cashing, currency exchange and tax services.