Legislators in Ohio and other states are continuing to cap payday loans to 36% or lower. The lower interest rates has already forced over 150 payday lenders to close their stores. Politicians in Ohio took away a financial choice that people prefer, and for many, are their only choice.
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There is a new phone scam where phony debt collectors call posing as law enforcement officers, lawyers, bankers and other professionals with authority. The targeted consumer is falsely threatened with arrest for committing bank fraud. They are very intimidating and scare and confuse consumers with legal and financial jargon. The goal of the scam is to get your bank information so you can wire the money you owe so you won’t get arrested.
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Following Pennsylvania’s interstate payday loan legal lead, Minnesota is now requiring all cash advance companies making small loans to Minnesota residents be licensed under MN law Monday.
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The Ohio Ballot Board voted in favor of payday loan companies this week when they voted against interest related language that was to be placed on a ballot. The language would outline what could be charged on a loan, 390% or more. Anyone familiar with how a payday loan works knows that the cash advance is short term, so traditional means of calculating interest such as APR, don’t apply since most loans are paid back in 2 weeks. The panel concluded that allowing the language to be included was prejudicial.