"Ohio outlawed payday loans – and the 391 percent interest rates that went with them – in 2008.
Instead, the state adopted a short-term loan law that caps annual percentage rate, or APR, on paycheck loans at 28 percent -- one of the most ignored laws since Prohibition.
Today, payday lenders in Ohio freely dispense loans that can carry annual percentage rates, or APRs, of 600 percent or more.
Payday stores simply refuse to take out short-term loan licenses, opting instead to be licensed under the Mortgage Lending Act. This switcheroo allows them to create new fees that boost the price of their loans. Some stores, for example, issue loans as checks that they charge customers to cash. Or they charge customers for a "credit check," even though the loans aren't contingent on having good credit. " (Sheryl Harris)
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Could a muni court reel in Ohio's payday lenders? Plain Dealing by Sheryl Harris
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