The Uneven Ohio Playing Field

In Ohio, banking regulators are willing to practically erase cash advance lending by putting a prohibitive interest rate on payday loan companies. But they are not looking to keep the same standards across the board. With the fierce on H.B. 545 in the whole Buckeye State, there has never been a point at which so much attention is paid to personal loan. That is perhaps why it has taken such a long time for fast cash loan companies to feel that Ohio is maintaining a great double standard. The state desires to "save" consumers from the loans having triple-digit interest rates charged by payday lenders. But it looks less concerned with those similar charges being stated by mainstream banks.

Because "true" lenders such as banks and credit unions are not subjected to the specifications of the Small Loan Act, their fee charges and short term rates, small-dollar personal loans are not restrained. A cash advance lender may be restricted to levy more than 36% APR but some banks are charging 18% interest with miscellaneous fees. Payday Pundit selected one institution, blog for the Community Financial Services Association of America, was putting a $159 "loan origination fee," with higher interest rate. Due to this reason, a ninety-day loan of $1500 includes 60% annualized interest.

We felt amazed what the law makers of Ohio regard as the difference between payday loans and bank personal loans which makes the latter one so much preferable.

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