3. LOCALS IMPACTED In 2015, Charles Cline of Dayton said he'd been stuck in the payday lending trap. He said he took out a $1,000 loan and ended up paying $1,600, due to extensions, fees and interest. "Trying to help yourself get out of a bad situation, you end up hurting yourself more. They are preying on people that are poor, that are less fortunate, that need to get by throughout the week," said Cline, adding he won't be taking another payday loan.
4. HIGH FINES AND FEES Payday lenders usually charge interest of $15 to $20 for every $100 borrowed, according to the Consumer Finance Protection Bureau. The lenders let borrowers "roll" the debt forward, delaying payment until next month — and saddling borrowers with fees and interest.
5. FILLING A NEED Cheney Pruett, a Texas resident who owns 59 CashMax stores in Ohio — including at least three in the Dayton area — called the bill "fatally flawed."
He acknowledges that some consumers find themselves stuck in cycles of debt, paying refinance fees for too long. But he said few customers find themselves on that “payday hamster wheel,” and his stores offer installment loans. He also said his loans in Ohio run closer to $11 charged for every $100 borrowed.
The Dayton Daily News is committed to bringing you in-depth coverage on topics that matter to you. Read more about the impact of payday lending in your community in this special report.