Ohio Payday Lenders Close in Wake of Regulations

Payday loans a tough business

Last year, the Ohio payday lending industry and its advocates fought to get harsh restrictions in the state overturned, but the policies stayed put.

This year, more than a third of the payday loan businesses in the state have closed down, much to the dismay of their former customers.

Regulated out of business

Ohio law places a cap on fees that payday lenders can charge, and it limits residents to four per year. Businesses warned that these laws would shut them down, and now that has become a reality.

Chron.com says:

There were about 1,600 retail locations across Ohio when the new interest rules went into effect last year, state officials said. About 960 remain, and those are under fire from critics who want to enact even tougher rules beyond the 28 percent cap on interest.

Struggling to survive

Payday lending in Ohio used to bring in a decent amount of business in Ohio. At least that’s what this guy said:

“The change has been a tremendous blow to the company,” said Ted Saunders, chief executive of Columbus-based CheckSmart. “I’ve closed 10 or 15 stores, and I’ve got more on the watch list. We were on a growth spurt until this happened.”

Words from payday loan users

Payday loan company owners aren’t the only people who object to the harsh restrictions and subsequent shutdowns. Some payday loan customers talked to Chron.com:

Some customers still say that payday loans are best for their needs.

“Are you going to loan me $200 for two weeks for $30? I don’t think so,” said Linda Coleman, 28, a machine operator and nursing student from suburban Colerain Township. ... click here to read the rest of the article titled "Ohio Payday Lenders Close in Wake of Regulations"