Bellefontaine Examiner

Switch to desktop

Ohio justices: Payday loans unaffected by 2008 law

COLUMBUS, Ohio (AP) — In a victory for payday lenders, the Ohio Supreme Court has ruled that a two-week loan to an Elyria man that imposed more than 235-percent interest is not prohibited under Ohio's mortgage lending laws.

In a unanimous decision Wednesday, the court sent Rodney Scott's case against Ohio Neighborhood Finance, owner of Cashland stores, back to the trial court for further proceedings.

The high-stakes case was closely watched by both lenders and consumer groups.

Advocates for Scott sought to close a lending loophole that has allowed payday-style loans to continue as interest-bearing mortgage loans despite a state crackdown on predatory short-term lending passed in 2008.

A lower court ruled Ohio lawmakers intended the 2008 law to prohibit payday loans. Justices ruled Wednesday that the law doesn't have that effect.

Share this post

Submit to FacebookSubmit to Google BookmarksSubmit to TwitterSubmit to LinkedIn