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Payday lenders search for alternate products or plan to close their doors forever
Payday lenders search for alternate products or plan to close their doors forever
YOUNGSTOWN — In the wake of legislation Gov. Ted Strickland signed Monday that limited how payday-lending companies do business in Ohio, some local lenders are wondering if they will be able to stay in business.
House Bill 545 capped the interest rate payday lenders can charge for loans at 28 percent and prohibited them from adding other fees.
To make up for anticipated lost revenues, some lenders are searching for other products.
“It’s devastating because we’re going to lose a lot of our business,” said Mike Dohar, owner of four Midwest Money Center locations in Youngstown, which employs five full-time and three part-time workers.
For more information, see Wednesday’s Vindicator or www.vindy.com.
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Comments
Unfortunate; however; people know the lending rate when they get cash. Stupidity of not knowing is their problem. Lets put more businesses out of business, Bush & Cheney do it.
The Ohio law imposes a 28 percent annual rate cap on payday advances. Under this rate cap, the current fee of $15 per $100 advanced would be reduced to less than 10 cents per day. In response, many payday advance companies have announced that they will be closing stores in Ohio, putting as many as 6,000 jobs in jeopardy.
The referendum would repeal Substitute H.B. 545, which was signed by Governor Ted Strickland on June 2, 2008. Voters will be asked to oppose enactment of the Sub. H.B. 545 as adopted by the General Assembly and actually have an opportunity to have their voices heard and maintain their right to determine their own financial destiny.