Check 'N Go, a pay day lender, is closing 36 of its 71 stores in Ohio after voters failed to repeal a law that stopped them from charging asinine interest rates.
From the Business Courier of Cincinnati:
The move follows the rejection by voters of Issue 5, a referendum sponsored by the payday lending industry. The issue, if passed, would have repealed a recently enacted state law limiting interest rates the industry can charge to 28 percent, versus the previous annualized rate of 391 percent.
The day after the Nov. 5 election, Fort Worth, Texas-based Cash America International Inc. announced that it would shut down 43 of its 140 shops in Ohio.
“Unfortunately, as we communicated throughout the campaign, operating under the restrictions set forth in House Bill 545 is not an option,” said Doug Clark, chief operating officer for Check 'n Go, in the release.
In case you were not aware, pay day lending is a form of evil.
Check 'N Go closing 36 Ohio sites [Bizjournals] (Thanks, Nick!)
(Photo: u2acro )
1 comment:
The payday lending industry is trying to circumvent Ohio's new law and skirt it's intent. House Bill 545 and state Issue 5 passed, affirming the 28% APR rate cap on payday loans. The 28% cap prevents hundreds of thousands of Ohioans from being caught in the never ending cycle of payday loan debt. Ohio voters saw the payday loan product for what is was: a defective and predatory product designed to trap borrowers in debt! I hope the Ohio's Attorney General and outside counsel ensure that lenders comply with the new law. The $15 origination fee is the same as 391% APR interest. They are trying to charge even MORE than that now! That was clearly not the intent of the law and it's too bad that the payday lenders have a problem adhering to the law and the wish of the voters!
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