I applaud my Ohio Lawmakers
Date: Thu, 05/01/2008 - 10:24
A. Instead of getting $15 per $100 the payday loan companies will only be able to recoup $2.50 per $100 loan.
B. The maximum amount for lending will be cut from $800 down to $500.
C. The interest rate will change from .391% to .28%
D. Lenders would be banned from charging loan initiation fees
E. A statewide database will be started that will track the loan history thus limiting someone from going to Peter to pay Paul.
F. An individual will only be allowed to take out 4 loans per year, once they reach three loans they will be mandated to go to a free financial planning class before they are allowed to take out the loan.
The payday loan industry is up in arms here in Ohio, as they see the golden goose flying the coop. The industry is stating that if they are forced to close their doors that Ohio will lose 6,000 jobs and that people will no longer have the ability to borrow when in need. What I don't get is that these companies say they cannot make it on 28% interest charges, which I find hard to believe. I would love to find a bank where I could deposit funds into it and earn 28% interest.
Good for Ohio! Of course, in articles I've read, the people who
Good for Ohio! Of course, in articles I've read, the people who work at the PDL's there are cryin' the blues...
Yeee hawwwww! Good times! I'm keeping my fingers crossed! :)
Yeee hawwwww! Good times! I'm keeping my fingers crossed! :)
They're correct. They can not survive at 28%. Much to all of you
They're correct. They can not survive at 28%. Much to all of your surprise, I think that law is a shame. It does not do justice. It's a classic case of throwing out the baby with the bath water. They have opened up Ohio residents to seek assistance through the internet. The right solution is not to attack a fee of $15 per 100, but to enforce collections practices and insure lenders are following the law regarding them. There is a market outside of this site for people that use payday loans for legitimate reasons. I know we all think it's propaganda, but there are people that take a pdl to get them by for a week or so and avoid returned item fees. A pdl is designed to be a bridge loan, not a financial solution. We don't ban cough medicine because it is being misused...we restrict it's use. This is a death sentence for an industry made by people that really don't understand it. Just my opinion. -James
I just got off the phone with the AG office in Ohio because I ha
I just got off the phone with the AG office in Ohio because I had filed complaints and wanted a refund for the $ I overpaid and they said they are not illegal. They said that these companies do not operated in Ohio so there is nothing they can do. I stated the laws of Ohio which I had received from here and was told that they would have to look into that but did not think it would help. They can lend out of their state and they can regulate them. I asked about the money being put into my account and that was were it ened in OHIO and she did not think that it mattered.