This recent article by Al Jazeera America illustrates just how bad the payday lending environment is in Ohio. We are lagging behind much of the country in this area, primarily because of policy loopholes that allow the lenders to act as brokers. Because of this, they can charge ridiculous fees that are “broker fees” rather than interest. Here is the staggering result:
“A 2014 short-term lending study led by Kent State University economics professor Shawn Rohlin estimated that the industry makes 6.5 million loans in Ohio annually, with a total loan amount of $3.7 billion.”
There are some words in the article by Jeffrey Diver, Executive Director of OCDCA Member, Supports to Encourage Low Income Families (SELF). It’s a good and interesting read, but brace yourself.