On December 10, the Ohio Supreme Court will hear a case concerning short term, high interest loans known as payday loans. The focus of the case is the breadth of the Short-Term Loan Act, which limits how much lenders can charge.
Payday loans are prevalent throughout the state. Some consider these loans to be usurious and a debt trap for low income workers. Lenders say they are merely filling a market need.
Much is at stake. A court brief filed on behalf of Richard F. Keck, former Deputy Superintendent for the Ohio Division of Financial Institutions, stated that upholding the lower court’s decision will “put billions of dollars of loans at risk.” Overturning the decision will mean the legislature’s effort in 2008 to regulate payday lending, by passing the Short Term Loan Act was passed, accomplished nothing.
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