Hello ,

 

 

Interested in what's going on around the States with Payday Loans? The Texas CSO/CAB Model that was used in Ohio for years is now out of favor. 

 

The first license under the Ohio "Short Term Loan Act" that regulates payday lenders has been issued to SCIL. They do business as Speedy Cash.

The law prohibits borrowers from owing more than $2,500 in outstanding principal at a time from multiple payday lenders. The law limits monthly maintenance fees to either 10 percent of the principal or $30, whichever is less, and caps the overall fees for a loan at 60 percent of the principal.

 

Danielle Sydnor, who heads the NAACP’s Cleveland branch, views payday lending as a “necessary evil” that provides small short-term loans to individuals with thin credit who lack savings to pay for emergencies like car repairs.

 

• Limits loans to a maximum of $1,000.
• Limits loan terms to 12 months.
• Caps the cost of the loan - fees and interest - to 60 percent of the loan's original principal. 
• Prohibits loans under 90 days unless the monthly payment is not more  than 7 percent of a borrower's monthly net income or 6 percent of gross  income. 
• Prohibits borrowers from carrying more than a $2,500 outstanding  principal across several loans. Payday lenders would have to make their  best effort to check their commonly available data to figure out where  else people might have loans. The bill also authorizes the state to  create a database for lenders to consult.
• Allows lenders to charge a monthly maintenance fee that's the lesser of 10 percent of the loan's principal or $30.
• Requires lenders to provide the consumers with a sample repayment schedule based on affordability for loans that last longer than 90 days,  the.
• Prohibits harassing phone calls from lenders.
• Requires lenders to provide loan cost information orally and in writing.
• Gives borrowers 72 hours to change their minds about the loans and return the money, without paying any fees.

 

Thanks for being a loyal email subscriber since March 5, 2019. I appreciate hearing from you. Let me know if you ever have any questions. Jer and Miro @PaydayLoanUniversity