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Ohio: Lundy

June 1, 2009 - 01:24 pm
NEWS FEED: Columbus Dispatch

More payday-lending ammo readied

By Jim Siegel

More than 600 payday-lending stores have closed since lawmakers voted to end the business model that allowed them to charge the equivalent of a 391 percent annual interest rate on a two-week loan. Instead, lawmakers tried to limit the rate to 28 percent.

More than 900 payday-lending stores remain in Ohio, and some lawmakers and consumer advocates say the stores are skirting the intent of the new law by using alternative licenses to continue charging fees that bring them close to the 391 percent interest rate.

Rep. Matt Lundy expects to introduce a bill this week that would cap interest at 28 percent for all loans of up to $1,000 made for a term of three months or less, regardless of what license the lender is using.

Read More at Columbus Dispatch >
There have been 40 comments posted in response to this story.

March 26, 2009 - 12:55 pm
NEWS FEED: Columbus Dispatch

Editorial: Let it be

But this doesn't mean that such deals should be outlawed, as proposed by state Rep. Matt Lundy, D-Elyria, head of the House Consumer Affairs Committee. He is sponsoring House Bill 12, which would ban Ohio's colleges from making so-called affinity agreements with banks in which a college provides a bank with student data and exclusive rights to market its cards on campus.

Such deals are lucrative for universities. Ohio State University gets $1.4 million a year from its deal with Bank of America, and the bank receives a mailing list of students and staff and the right to put the school's logo on its cards. According to its latest filing in 2006, OSU's Alumni Association also receives $1.

Read More at Columbus Dispatch >
There have been 45 comments posted in response to this story.

February 20, 2009 - 08:03 am
NEWS FEED: Columbus Dispatch

Fixing payday-loan law is legislators' job, state says

By Jim Siegel

Some had hoped that the commerce department, which regulates the payday-lending industry in Ohio, could act on its own to stop payday stores from charging higher rates for short-term loans than was envisioned last year under the state's new payday-lending law. House Bill 545 capped the annual interest rate at 28 percent.

Lenders are getting around the new law, which was affirmed overwhelmingly by voters in November, by offering short-term loans under Ohio's Small Loan Act. Many are then adding fees for credit checks or for cashing the check they just issued, raising the cost of the loan closer to the 391 percent interest rate that the General Assembly tried to eliminate.

Read More at Columbus Dispatch >
There have been 32 comments posted in response to this story.