Ohio Passed the reform law for payday loans

Hi Cheekla, not sure what will happen with outstanding loans. I know serveral lenders have applied for the "small loan" licences, but I don't know which ones. Some are going to try to make it and see what other "products" they can offer. I was in a really bad PDL situation until about 4 months ago, when the law was first being looked at, I jumped out big time. It has messed up all my other bills, but the PDLS are all gone now. I just stop borrowing, let them default and paid them as much every payday as I could. They called alot, but I was able to head them off. I would say your safe for about 90 days from default. Before they might take you to court. Getting out was the hardest thing I've ever done. I was very scared and like it said it has now messed up the rest of my life, but I got out that's the most important thing!

Sit down and figure out how much you owe, how much you can payback each payday and just jump!

Good Luck Reny

Glad you got out lmale.... i'm sure ALOT of people are in this situation now. I'm in the same situation as you Cheekla, I will keep you updated if I find out anything.

what will happen now will storefronts close if so which ones

only time will tell:)

I do not have stores in Ohio, but have dealt with this before. As of this morning, I would guarantee that any store still doing loans yesterday will no longer offer loans today. They will go into a "collection" mode or attempt to move thier current customers to a new installment product. Will they ultimately close thier doors? Look to Arkansas and Oregon for your answer.

Your elected officials and now the liberal voters have forced anyone in the need for a short-term loan to the unregulated world of the internet. Yesterday, if you needed a small loan, you could walk into a licensed storefront or seek out a licensed internet lender to borrow from and have a controlled environment for fees and processes. That, my friend, is now gone.

and the internet pdl's will soon follow,so quit the crying owner.

and if we are lucky, other state will soon follow suit :twisted:

what happened in arkansas and oregon. i talked to one lady who works at storefront and she said they would be fine and signs are up saying new loans and new customers welcome

MOst companies have tried to work within the guidelines set forth by the state and have since closed thier doors. This leaves residents out of work and landlords with no rent.

By the way, you're living in a fantasy world if you think that the off-shore companies will not ramp-up marketing to Ohio. They will buy leads by the thousands every hour and approve loans at $30 per $100. Just watch...

Your state, my state, nor any other state has the means to stop it. Now they just have no means to regulate it!

Reality is an awful thing to face. Fortunately, I do not do business in Ohio, so it is a tad bit easier.

Just as there has already been an announcement of 150 jobs lost due to this, there will be more to come. Reality also will demonstrate that internet loans and Ohio residents going to IN/MI/KY to borrow will skyrocket.

Please go away.

Go away??? Why?

Show me where anything that I have stated is inaccurate? It might not agree with your message of telling people to not take responsibility for their obligations, but it is not inaccurate.

Just for fun, I would challenage anyone out there to cite and example of a time when they were "forced" to take out a payday loan. Did an employee require you to walk in thier store or go to their website and physically make you fill out the application, supply your paystub and bank statement. The they "made you complete the transaction by writing a check or requesting an amount?

I challenge anyone to show where the PDL store was responsible for you to make a conscious decision. I/we are not the bad guys, it is the customers that abuse the system and live outside thier means. Of all of the customers of the PDL industry, approximately 95% of them use the product responsibly and appreciate what we offer. The truth is that if you have more than 2 or 3 loans out, you need to restrain yourself and ask for help, not pass the blame to those that YOU seek out to borrow from. There are ways out, but you have to first stop borrowing, then seek help. As I stated in another thread, seek out an affiliated agency of CCCS as they do not charge you a fee and can help in most cases.

That may be the case but some of the companies do not check the laws in the states where your customers live. In some states payday lending(including internet) is illegal. Then your organization want to call a person job all day long for an illegal loan that you make in the first place. On this forum, the moderators always tell people to pay the money back from an illegal loan. Now my question to you is why do you call people after you have been fax or e-mailed an cease and desist letter. Also, who can we contact in your country when you bug us.

I seriously doubt that 95% of people using payday lending is using it responsibily under such astronomical interest rates. You think you make the right choice --- but the finance charge is so large it is very difficult to get out from under it. The other thing is as soon as you know you can't pay a loan ---- all the company says is sorry --- can't do anything for you until the checks are returned NSF (as it racks up NSF fees because they have converted your check into an ACH transaction and continue to do so continuously until your account is closed) and then ----- they will call you and say the amount is due in full. There is no help there.

Sorry --- I'm glad the Ohio people made the decision they did. All is fair --- went to the ballot, voted on by the people and the concensus is they shouldn't charge such rates.

waasu91, you are exactly correct about the illegal lenders on the internet. In this day and age, there are few if any bricks and mortar stores that are operating illegally. On the internet, it only take one click to find hundreds. That is why I have stated over and over to look for licensed lenders only. If they have a license, then they are required to abide by the laws for YOUR state, not Utah, Delaware or someother faraway country.

As for your question about a C&D letter. Retain an Atty, have them send it and I am required to cease contact. Print it off the internet in order to not pay me back and I continue to collect "my" money that YOU chose to borrow. I follow this practice because I am licensed in the state that I do business. BTW, my company has a website with telephone, address, email and my name listed.

owner,most if not all internet pdl's know the laws yet break them left and right.it is up to the lender to follow the laws and not lend where they shoudln't.example:i am in illinois the law states that a pdl internet or storeront must be licensed to lend in illinois.however that didn't stop 11 illegal pdl's from lending to me.again it is up to the LENDER to follow the laws and not lend where they shouldn't.

Well, if the PDLs' who provide loans to anyone in Ohio will be limited to a 28 percent interest rate, and most of the online PDLs' charge well over that, then aren't they for all intents and purposes illegal in Ohio? And if a contract is illegal to begin with, is it enforceable?

Same thing in my case, pdl's are prohibited in CT, but their websites don't state that they can't lend to CT residents. At one point I had 14 loans. If the consumer isn't aware they are illegal and the pdl isn't about to tell them, then who would be in the wrong? The pdl companies should be aware of the laws for each state and follow them to a T, then perhaps there wouldn't be so many people who end up defaulting due to their outrageous fee's and practices.

Paul, you again are exactly correct. If the laws in your state do not allow lending, then legitamate lenders do not operate there. Your example is the EXACT reason that there needs to be legislation in each state to allow and regulate the industry. If Illinois had not started "monkeying" with the laws 7 years ago, you would not have borrowed from 11 illegal internet PDL companies. The state forced you to make that decision by not allowing you to borrow under a controlled environment.

My question to you is, why do you want to lump the legitamate lenders in with the illegal/offshore lenders? You just stated that it is the lenders responsibility to "follow the laws and not lend where they shouldn't".

There is a little company based in Illinois called CashNetUSA. Check their site and tell me that they are not practicing lending based on your direction. BTW, I agree with licensing of Internet Lenders.

illinois didn't just regulate the rates.they also are the first to institute the cooling off period as well.that came about because the storefront pdl's had what they called a quota of loans they had to have.thus employees were calling people almost endlessly to reloan.so much for your theory about people gladly reloaning.besides there really isn't many if any places that do pdl's because of the regulations.

The bottom line is this, people do need to accept personal responsibility for their actions, but they also need to have the choice. I foresee in Ohio a lot more people getting their electric shut off, evicted from their homes, and not being able to eat because they have no other way to get the short term money they need.

i will tell you a little story I was going in to have surgery and was still going to be in the hospital on the day my loan was due, I was going to be off work wothout pay for 6 weeks. I asked them ahead of time if there was anything they could do, at first she said she could get the money out of the bank since my last check would be direct deposit and either come to the hospital or my home and reloan to me on Saturday.I told them they that would not work they would either have to work out payment arrangements after i got back to work or i would just stop pay and make my own payment arrangements. Fortunately she was able to help me and I was able to get it taken care of. I would say that was close to being forced if i wouldn't have stood up to them.

Paul,

You are partly correct with your last answer. Yes, they have all but eliminated PDL stores.

On the other hand, they were not the first state to institute a cooling off period, that I believe was Ohio in '98 or '99. They had some of the toughest laws in the country that still allowed you to operate profitably. As for the quota's, show me a business that does not market and I'll show you a business that closes. What you call quota's is simply growth goals. Just because a person call past customers and offered them the opportunity to borrow does not equate to forcing them to borrow. It takes a conscious decision to get into thier car, drive to the store, write a check and sign an agreement.

fair enough,but i would say illinos rate of 15.50 per 100.00 borrowed is pretty good.bet pdl's in OHIO would be shutting down with that low of a rate.

No, actually that is above the Ohio and target rate of $15 per $100. If there was a consistent regulation that covered all states for both Internet and Bricks & Mortar that provided $15 per $100, regulated roll-overs (none or a limit) and placed a cap on the loan amount, there would be no issues with illegal lenders scamming people.

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I guess running stores in 10 different states for 11 years would allow me to gather numbers without having to "pull them out of my rear". Along with running stores in these states, I have also have the "enjoyment" of dealing with CCCS in each of them.

As far as trying to get you in over your head, we only have the ability to see a small snap shot of your life and lend money to you when YOU make the choice to walk in our door. When it is discovered that you are in over your head, we will do everything that we can to help you out of the situation while still trying to run a profitable company. No company is is business to set the customer up to fail because the customers failure then costs the business money.

I feel for your situation, but as you stated "I don't blame the PDL's for my mess, it was my fault."

BTW Ryan, I'll continue with your game.

You came into that store to borrow money until your next payday. When that day came, you had not budgeted for this expense. Correct? So based on your admission of poor planning, you blame the PDL company for loaning you the money that you requested, when you requested it, at terms that you agreed to? Did you get an contract when you borrowed the money? Did it spell out the terms of the loan? Did it spell out how much to repay and when?

Don't get me wrong, I'll say it again, I feel for your situation. My issue is that you made the decision to walk into the store, borrow the money and agree to pay to back. How can you blame the PDL for "forcing" you to do anything?

They understood what was going on. When they would call for collections, I would let them know how many I had outstanding. They said they didn't care, come in and re borrow. I finally told them no, I am getting out of this. I had one try to sue in court but was able to pay it off before the court date came. I wish the stores in Ohio ran like your stores then. I only had 3 companies that would work with the company. The rest wanted nothing to do with it. Maybe if they ran your store like yours, Ohio voters wouldn't say Yes like the numbers they did.

How do you know 95% of your customers use this responsible if you "only have the ability to see a small snap shot of your life and lend money to you when YOU make the choice to walk in our door". You do not know nothing about your customers other than the $$$$$ comming in.

Like I told you, show me facts instead of figures out of your rear. You just said yourself you don't care if they do it responsible. They made the choice not you right?

Just a question here but don't these companys charge like a really ridiculous interest rate? I believe I heard something like 99%. I am glad they are changing these laws. I have never held a payday loan and woul have to be dead or dying before I would. There are soo many scary stories about them. PA will also put into effect Payday lender laws come Feb. 2009. They will have to cap their interest rate at rates lower than the mortgage rates and be required to be licensed. I am glad the goverment is stepping in.

That was my point! If Payday owner would read my statement he/she would have known that their loans are illegal in majority of the states.

I totally understand what you are saying, but you keep lumping LICENSED lenders in with the illegal lenders. The difference is that a licensed lender will NOT offer loans in a state where it is illegal. Almost every post that I have seen on this forum is from individuals that went onto the internet, typed in "payday loan" and gave this website all of your personal information. They send you money that you agree to payback and when you can't, they try to collect. Now, I will not agree with their practices, tactic or morals, but it is in no way fair to condem licensed lenders for an individuals lack of due diligence when giving their personal and financial information out over the internet.

Folks, if there are not store front PDL companies in your state, it is due to legislation. Legitimate lenders would have stores there prior to setting up on-line lenders. If you can only get a loan on-line, buyer beware. It is illegal. At the present time a majority of the states allow legal on-line lending. If you want to do a quick check of where a loan is legal, go to cashnetusa.com, this is the largest on-line lender in the country. When you click on a state for their rates (which comply with your state regs) there will also be an option to see thier license for the state if required.

No..........I was talking about the illegal lenders.

I guess that I missed something here...

The reason they are illegal lenders is because they can remain anonymous on the internet and ignore the laws.

I would like to know how does one find out if a lender is legal in their state. I see a lot of people state that such and such lender is illegal but how do you get that proof?

There are many ways, but if you are on thier site they will have either a scan of their license or their license #. Also, based on posts here, you can research this forum by entering the name in the box at the top right.

If you are in Ohio, as I presume from your name, as soon as the vote are certified, on-line PDL's will be gone because you cannot afford to loan small amounts of money for a short time at 28% apr.

The bottom line is before you give any personal/financial information out over the internet, make sure you know who you are dealing with.

With Ohio's new law, ALL internet pdl's are illegal.


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If internet pay day lending would be banned and illegal out of state lenders would have no access to Ohio small claims courts, does that apply retro-actively to loans with companies that we already know are illegal to loan in Ohio.

If they have no access to the courts does that mean they are just out of the money?

From what I have been reading many of these PDLs have been converting their licenses with the Commerce Department to operate under the Ohio Mortgage Loan Act. So far in Ohio only Cashland said it will elliminate 43 stores and lay off 150 employees. Funny thing though I know see Cashland is buying gold and offerring "pawn loan services".

Right so much for the 6000 losing jobs.

Major tip of the hat to Ohio for passing this law. I know that there is probably going to be a court fight on this, like there is when any proposition passes/loses. Does anyone from Ohio have an update on it?

I haven't heard anything new, but this is an interesting article:

http://chillicothegazette.com/article/20081109/NEWS01/811090313

payday loans wouldn'e be so high if the people who work there wouldn't be so rude and uncaring. Sometimes things happen and you can't help that. The bad thing is they want payment in full...NO EXCEPTIONS. they not only refuse to take a partial payment of %50-%75 percent but they bug the living daylights out of you and your entire family

payday loans wouldn'e be so bad if the people who work there wouldn't be so rude and uncaring. Sometimes things happen and you can't help that. The bad thing is they want payment in full...NO EXCEPTIONS. they not only refuse to take a partial payment of %50-%75 percent but they bug the living daylights out of you and your entire family

There isn't a storefront payday loan place on the face of the earth that won't take partial payments. Let me ask you a question, if someone owes you 300 bucks and they only have 200, are you going to take the 200? Right, thought so. Stop the lies people. Stick to the facts.

question for you amazed.have you experienced any of what a pdl does?if you haven't then maybe you shouldn't post where you don't belong.quit accusing people of lying when you don't know the facts.

Amazed writes...
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