Keys for Collateral: how loans that are auto-title become another car for payday lending in Ohio

Keys for Collateral: how loans that are auto-title become another car for payday lending in Ohio

Loan providers have actually circumvented Ohio legislation made to restrict lending that is payday while having started running under laws and regulations meant for other purposes. These loans place struggling families at danger of losing the automobiles they be determined by with regards to their livelihood.

Policy issues has carried out research on payday financing in Ohio going back 5 years. Our initial research discovered that the payday financing industry expanded from simply over 100 shops when you look at the mid?1990s to a lot more than 1,600 stores in 2007, with shops in 86 of Ohio’s 88 counties. Ohio’s prior Check Cashing Lending Law to our concern, which legalized payday financing in 1996, ended up being that loan providers could charge a yearly portion price (APR) of 391 %, $15 for almost any $100 lent.