Unlike several neighboring states, Ohio rules on payday lenders fall short in keeping the high interest payday loans at bay.
Ohio did crack down on high interest, short term loans in 2008 by making them illegal, but really did not do much of a job enforcing the law and instead of them going away these loan companies adapted.
Loopholes were taken advantage of and now 300% annual rates are the norm for these loans in this state.
Lawmakers love these companies!
Many lawmakers have a fondness for these companies simply because the payday loan industry is a huge source of donations for these politicians. You give them what they want, and they will give you money, simple as that.
In the last four years, the industry has donated over $465,000 to legislative campaign accounts in Ohio, and the end seems anything but near.
Some politicians have tried to revisit this law and see if they could close some if not all of the loopholes that are allowing these companies to still do business in Ohio.
They continually fail to get anything done due to so many contributions to fellow politicians.
The federal Consumer Financial Protection Bureau calls these loans debt traps. They claim that more than half of the borrowers of these loans take out a minimum of 10 to 14 loans a year.
Several states are taking a bit different direction than Ohio has. For instance, West Virginia has been steadfast in their caps on interest rates and will not give in to legislatures that try to get them off the books.
Ohio is not in the situation to do this simply because back when they could they chose not to enforce the laws, and now the industry has walked all over them.
These companies can now can get around the laws and charge incredible amounts of interest right in front of the lawmakers.
We will be here for you
Here at help payday loan debt we take these companies very serious, and we offer the borrowers who are trapped in these high interest loans a way out.
We will always, as long as these companies do business, be here to keep helping those in need.
Next time you even think of taking out a payday loan, remember three things.
- Best way to take one of these loans out is not to take one out at all. Do yourself a favor and find another way.
2.If you do take out a payday loan, only borrow what you can pay back your next payday in FULL PERIOD. The interest will be high, but once paid it will be a done deal.
- Never ever roll over a payday loan. This is where they trap you! Before you know it, you will have paid more in interest than the loan amount, and this can happen within a month.
I hope this information helps you make good decisions when thinking of borrowing short term money!