Ohio Supreme Court Decision: Score 1 for Payday Lenders
When payday lenders in Ohio were restricted by state law to loans with interest rates of 28%, no more than $500, and with a minimum 31-day payback period, payday lenders began making loans under the Mortgage Loan Act which has no cap on interest rates and permits single lump payments (the case surrounded a borrower who failed to repay a $500, 2-week loan with an interest rate of 235%). A lower court said payday lenders were skirting the law. Ohio's Supreme Court disagreed, saying its justices could not second-guess the intent of legislators. [6/13/14]
