Our loans are 5% plus 4 dollar fee ticket and we are right around the corner from Cleveland Heights! Cleveland Heights lifts payday loan moratorium, pushes state to keep interest rates low ( not as low as South Euclid Pawn)!! Reaching the Bankless Cleveland Heights is lifting a moratorium on new businesses that issue payday loans without a license under the state’s Short-Term Loan Act, which caps interest limits at 28 percent. (AP file photo) CLEVELAND HEIGHTS, Ohio –- The city council on Tuesday plans to vote to lift a moratorium of more than a year on new businesses that issue payday loans without a license under the states Short-Term Loan Act, which caps interest limits at 28 percent. City Manager Tanisha Briley said the city is forced to lift the moratorium after the Ohio Supreme Court in June ruled companies could issue payday loans using a mortgage lending license, under which they can charge triple-digit interest rates -- an average of 367 to 390 percent, according to the city. Council on Tuesday also will vote on a resolution requesting the state legislature to require all payday lenders to operate under the Short-Term Loan Act. In 2008, the lenders went to the voters and tried to get that Short-Term Loan Act repealed and the voters told them no. They thought the limit should be set at 28 percent, Mayor Dennis Wilcox said. Payday loans are short-term loans usually due on the borrowers next payday. Council declared the moratorium in June 2013 while the Ohio Supreme Court weighed whether a payday loan company was fraudulently operating using a mortgage lending license in the Neighborhood Finance vs. Scott case. In 2008, Rodney Scott took out a $500 loan from a Cashland store in Elyria. When he didnt repay the loan within two weeks, Cashland sued him. Fees and interest on the loan totaled an annual percentage rate of 245 percent. But Ohio Neighborhood Finance wasnt doing business under that law. Like many other payday loan businesses, Ohio Neighborhood Finance registered under the Mortgage Lending Act. Payday lenders are predatory by nature. They prey on those of us that have less. They prey on those of us that can least afford to be taken advantage of, councilman Jason Stein said when the city enacted the moratorium last year. Payday lenders are not welcome in Cleveland Heights. Stein could not be reached for comment Tuesday. At least two short-term loan companies operate in Cleveland Heights -- Check Into Cash on South Taylor Road and Loan Max on Cedar Road –- neither of which offers payday loans, employees said Tuesday afternoon. Both offer title loans, charging as much as 24.9 percent interest. Check Into Cash also offers installment loans with up to 8.5 percent interest. PrintChanda Neely, Northeast Ohio Media Group By Chanda Neely, Northeast Ohio Media Group Email the author | Follow on Twitter on September 02, 2014 at 1:55 PM, updated September 02, 2014 at 3:58 PM
Posted on: Wed, 10 Sep 2014 16:31:33 +0000
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