Ohio is taking them to court!!

That is terrific news! :)

On the one hand, that sounds like a terrific reduction. Great news indeed! I hope they manage to pass it.

On the other hand... Thirty six percent!? Gah.....

I haven't heard that yet, I live in Ohio, guess I need to get my head out of the sand. lol! I hope the law passes, I hope, but I'm not holding my breath on this one. 8)

Shazzers, what are they allowed to charge now?

$15.00 on every $100.00 dollars. I'm pretty sure of that. This 36% is something I haven't heard about, I'm not saying it isn't true, BUT, as YOU said about 36% - GAH! And I say: R-I-P O-F-F! sheesh.

It will be the end of storefront payday loans in Ohio if it passes. The big chains all closed up shop in Oregon and are pulling out of DC when they went to 36% caps.

I doubt they'll be missed, though . . .

FreakyFriday

It will be the end of storefront payday loans in Ohio if it passes. The big chains all closed up shop in Oregon and are pulling out of DC when they went to 36% caps.

I doubt they'll be missed, though . . .

They won't be missed by me, THAT I can guarantee ya! :lol:

Does it look like it's going to pass, though? Virginia and New Hampshire keep talking about going to a 36% cap but the bills never get out of committee. And Check and Go is based in Ohio. I'm sure they have one hell of a lobbying budget.

It would be great if Congress would just step in and set a cap for the whole country like they did for the military.

This is the only recent thing I could find on this new interest cap in Ohio:
http://www.npr.org/templates/story/story.php?storyId=14853904[/url]

Oh wait! That's for Military families, DUH! SORRY!!

has anyone else heard that the small storefront pdls are actually owned by big banks and corporations? If this is true I think they will just think up new way to make more $ no?

Most storefronts are part of chains that range from small 10 store outfits to Advance America with nearly 3,000. And yes, I'm sure they will think of new ways to make money, although I don't think that's necessarily a bad thing. I don't know very many people, let alone companies, that don't want to make more money.

I agree Freaky but why would it be the end of storefront pdls in Ohio or anywhere else?..cant they simply reopen under new entity or name? and yes the bigger the co is the more money they will and can figure out how to make you are so right!

here's a story from September, I still looking for the one from the other night.
oxfordpress.com/business/content/oh/story/.../07/hjn090707payday.html

Lren0318
here's a story from September, I still looking for the one from the other night.
oxfordpress.com/business/content/oh/story/.../07/hjn090707payday.htm
The story doesn't appear to be available anymore. I hope you find the story pertaining to this, I would be interested in reading about it. Thank you. :)

I live in Oregon, and there are still a ton of payday loan places here. They didn't all close up shop and leave when Oregon passed it's 36% law. Part of the reason is that Oregon's law does allow for a processing fee, so they can still charge $10 for every hundred. All they have to do is not allow rollovers and they can charge it everytime.

It would be the end of storefront pdl's in Ohio because you can't make a profit on a pdl at 36% annual interest. 36% is huge if you were talking about a mortgage or car loan. But on a $300 dollar loan that's due in two weeks, it equates to 3 or 4 dollars. I know the advertising costs for my company average out to a lot more than $4 per customer we have. And that's before paying wages, rent and all the other expenses of running a business. That's why they left Oregon and are leaving DC.

Now, don't get the idea that I'm feeling sorry for the payday lenders. It's their own damn fault they came up with a business that can't make money at 36% a year. They could offer more money over a longer period of time (like Citifinancial and Household Bank) do at the lower cap and probably do well. But they won't.

Maybe Mom and Pop's have found a way to stay afloat in Oregon. Since you live there and I don't, I'll defer to you on that Goudah. But the big chains are leaving.

For example:
advanceamerica.net/pressreleases.php?a=show_releases_details&id=25

Advance America still has many locations . . . So does Check into Cash, Check n Go, and all the other big ones. They said they would have to leave when the law was passed, but they have managed to stay afloat.

It's because Oregon's law is messed up. The stupid processing fee makes the 36% interest rate cap a moot point. They can still charge you about $12 per $100, so it didn't really cut to much into the profits. The only difference is now they have to wait 7 days before reloaning.

I just read that article . . . Maybe they are closing. Which would be nice. But they haven't closed yet.

Check into Cash and Check n Go and some of the other big guys in Oregon have also just expanded their businesses to offer check cashing and other things to help with the profits. But before the law, Check in Cash was offering loans for about $15 per $100, so the law didn't change much.

Ohio needs to make sure it doesn't cave to the pressure and allow for some stupid processing fee like Oregon. Without that fee, they would be out of business by now.

Agreed. Thanks for the info on the real situation in Oregon, by the way. I've never been there so all I "knew" was what I read online. Next time the issue comes up, I'll be better informed.

Yeah, when the law was first past, it was big news . . . . But in reality, the payday lenders got saved. All they had to do was change their model and not allow rollover, and the consumer would have to pay the processing fee every time. It was a big let down.

But the good part of Oregon's law is that it now specifically says that internet based lenders must comply and be licensed. It was a gray area before, but no longer.

I have posted a few articles on here by the Disptach for regulations they have thinking about. My gut feeling is there is too many lobbiest in Ohio and it will not pass.

Here is the article in the Dispatch today.

dispatch.com/live/content/local_news/stories/2007/12/13/PaydayTalk.ART_ART_12-13-07_B5_808OTL3.html?sid=101

I like how they claim to make only 99 cents off of each loan. HAHAHAHA

I have that feeling too . . . This has been in the works for a while. To add fuel to the fire, the FED has released this report:
December 14, 2007

Fed Report: Payday Loan Bans Backfire

On paper, prohibitions against cash advance lending sound really good to a lot of people. After all, it is widely agreed that payday loans are high-price rip-offs, and that their lenders engage almost universally in shady business practices. Wiping fast cash loans off the map is a clean solution ???????? rid the working-poor and financially vulnerable populace of the temptation to engage in these ruinous personal loans, and you????????ll be doing them a favor. ???????Right?

Not so, says a new report by the Federal Reserve. In a ground-breaking study, the Fed seems to indicate that payday loan bans may not be such a blessing to the consumers who are most likely to use them irresponsibly. The study examined post-cash advance Georgia and North Carolina, which banned fast cash loans in recent years and have managed to send all lenders packing. The Fed found that the same people who once turned to payday loans are still suffering financially ???????? and still getting caught in debt traps. The only difference? Now, they are getting stuck with exorbitant bank overdraft fees on bounced checks, and being harassed by debt collectors for overdue bills that they have no way of managing.

CFSA can say "I told you so" all they want. Their product didn't offer any solutions to overdraft fees and late charges. It just replaced on problem with another.

just food for thought..income tax returns are just around the corner..if these folks have expanded into cashing checks..it will be a prosperous time for them..Jan-April when people who don't get the type of "credit card" Hr block refund..and get their check in the mail instead of direct deposit because they don't have a bank account..they will be rushing to these places to cash their refund checks and pay the fees..big bucks for these guys I think