MoneyshopUSA

If they are charging more than 28% interest, they are illegal. Look up the laws http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Thanks, but that doesnt really answer the question--or maybe I should have worded it differently. Is Moneyshopusa.com a registered lender in Ohio?

The laws in Ohio have a huge loophole as far as maximum interest. Lenders can tack on all kinds of fees to take the aAPR well above the 28% and still be legal.

Did you read the link provided??

[QUOTE]Maximum Rate of Finance and Fees- 28% per annum [/QUOTE]

I understand how the law reads..however,

In Ohio lenders have been allowed to issue loans under the old laws.

There are dozens of storefronts operating under these old laws. Typically these lenders are charging interest and fees of $75on a $500 loan, and are being allowed to do this legally. They are allowed to charge $30 origination fee, $10 credit investigation fee, and the rest in interest.

The only question I need answered is whether or not the lender is licensed in Ohio.

the only money shop that came up was in the UK so no they are not legal at all.

Lots of loopholes in Ohio. If they're licensed, they can easily get around that 28% cap, Soap.

How do they manage to get around the interest cap if they are licensed?

In Ohio, they get around this in a couple of ways:

As a PDL, they can charge some additional fees on top of the 28% apr - a $30 loan origination fee and a $10 credit investigation fee.

For instance: CheckIntoCash charges, for a $500 loan, $6.28 interest, $30 loan origination fee, $10 credit investigation fee so $546.28 is due 14 days (ish) after it's deposited. If you add all the "fees" together, it ends up being around 199% apr. That's the PDL loophole.

Alternately, they can register as a CSO and charge even higher "fees" in addition to the 28% apr.

For instance: CashnetUSA can charge you a $125 CSO fee on a $500 loan, in addition to the $5.99 interest they charge. So, you end up paying a finance charge of 683% on this type of loan. BUT, that's only if you pay it off the first time. In Ohio a CSO lender can allow you to pay your CSO + finance fee up to 7 times where they will then reissue a new loan contract. If it takes you the full 7 times to pay off the $500, you'll have paid nearly $800 additional on top of that in fees.

That's the CSO loophole.