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Published:Monday, May 19, 2008
Pay advance companies have announced they will close their Ohio locations following the Senate’s approval to cap loan rates last week.
Legislation approved May 14, will cap the interest rates charged by so-called pay day advance companies to 28 percent. Companies have said the rate is too low; supporters of the bill say reported lending rates upward of 390 percent exacerbate financial problems for borrowers.
Check Into Cash, a cash advance advance provider with eight locations in Trumbull and Mahoning counties, said it will close all 93 of its stores in Ohio. Judy Powers, company spokesperson, said the closings depend on whether the company can offer new services. Another payday lender, Cash America, also announced plans to close 139 of its Ohio lending sites in the coming months.
An estimated 6,000 employees of the payday loan businesses in Ohio, including 220 from Check Into Cash, will be laid off, Powers said.
For more information, see Tuesday’s Vindicator or www.vindy.com.
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Governor Strickland needs to do the right thing for Ohio and veto HB 545. His veto would ensure that working families continue to have access to short term credit options and avoid devestating consequences for tens of thousands of Ohioans.
The payday lending industry is extremely important to Ohio’s economy. Our businesses contribute $250 million to Ohio’s economy, employ 6,000 Ohioans to whom we pay nearly $173 million annually in salaries and benefits, we occupy a total of 1,600 locations, for which we pay $77 million annually in rent. The ripple effect our business has on the state’s economy is tremendous—all of which is at risk with the passage of HB 545.
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