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Updated: 12:27 p.m. Tuesday, Sept. 29, 2009 | Posted: 11:02 a.m. Tuesday, Sept. 29, 2009

Payday lenders exceeding legal interest rates

By Staff Report

COLUMBUS — Some payday lenders continue to make loans at triple-digit interest rates, despite laws passed last year aimed at reining in the practice, according to a report issued Tuesday, Sept. 29.

According to the report, “New Law, Same Old Loans: Payday Lenders Sidestep Ohio Law,” found that lenders continue to make loans for 14 days or less, with at least $15 in costs per $100 and that many lenders loan the money in a check and then charge to cash those checks.

The report, authored by Policy Matters Ohio, also alleges that lenders are using unemployment, social security and disability checks as collateral or proof of income for loans, according to a news release.

The Ohio Short Term Loan Act, which caps loans at 28 percent, was approved by voters in 2008. The most common interest rate quoted by payday lenders was 10 times that amount, the report states.

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