In June 2008, customer advocates celebrated whenever previous Governor Strickland finalized the Short- Term Loan Act. The Act capped yearly rates of interest on payday advances at 28%. it given to some other defenses from the usage of payday advances. Customers had another success in November 2008. Ohio voters upheld this brand new legislation by a landslide vote. Nonetheless, these victories had been short-lived. The cash advance industry quickly created methods for getting all over brand brand new legislation and will continue to run in a way that is predatory. Today, four years following the Short-Term Loan Act passed, payday loan providers continue steadily to prevent the legislation.
Payday advances in Ohio are often tiny, short-term loans where in actuality the borrower provides a individual check to the financial institution payable in 2 to one month, or enables the lender to electronically debit the debtor”s checking account sooner or later within the next couple of weeks.