Payday loans are often regarded as practices designed to gouge people who are least able to protect themselves from exploitation. Those who turn to payday loans often do so under duress, when some urgent need for cash overwhelms the usual precautions that many consumers normally exercise to avoid debt traps.
Payday loans are easy to get quickly, but they come with a big cost. Instead of helping you get past a difficult financial time, they can wind up sinking you further into the quagmire of increasing debt.
If you are struggling with unmanageable debts in Ohio, there is help available. The seasoned Ohio bankruptcy lawyers at Fesenmyer Cousino Weinzimmer in Columbus, Dayton and Cincinnati provide free initial consultations for people throughout central and southwestern Ohio who have gotten into trouble with loans. We will examine your individual situation and find the best way to guide you to debt relief.
The state of Ohio attempted to protect consumers from outrageously high interest rates common among payday loan lenders. In 2008, Ohio passed the Short-Term Lender Law (STLA) regulating interest rates and prohibiting lenders from giving out loans on the internet or on the phone.
Additional protections include:
Unfortunately, this protection didn’t last, as lenders found a loophole in the law. In 2014, the Ohio Supreme Court ruled that payday lenders could bypass these regulations by registering as mortgage lenders (Ohio Neighborhood Fin., Inc. v. Scott, 139 Ohio St.3d 536, 2014-Ohio-2440).
To get around the consumer protections provided by the STLA, payday lenders can:
There is no cap on the fee that the Credit Service Organization may charge. Your promissory note will describe the fee as a “prepaid finance charge,” which is added to the total interest you pay on the loan.
As a result, you no longer have the protections that Ohio lawmakers intended you to have on payday loans. Many Ohio debtors wind up overburdened with payday loan debt, including unreasonable interest and other penalties that can pile up quickly.
Cash or check advance loans are a type of short-term credit where people borrow a small amount at a very high interest rate. Borrowers usually write a post-dated personal check for the borrowed amount plus a fee, in exchange for cash. The lender holds the check and presents it for payment on the agreed date.
The interest rates for these loans are exorbitant. The Annual Percentage Rate may be as high as 390%. The borrower has 6 months to complete the total repayment.
People use payday loans because it is the quickest way to get money. Usually they cannot send an application to the bank because they have bad credit history and don’t have time to wait to get the funds. For payday loans, there is no credit check, no certificate of salary, no pledge of property, no explanation of why you need the money. All you need is your passport, your valid Ohio driver’s license or your U.S. military identification. An application for a short-term loan can be issued in the office, by phone or online, and you usually receive the money in one day.
Here is a list of companies that provide online payday loans and installment loans in Ohio:
If you owe money to one of these or any other company in Ohio and are being harassed because you are unable to make payments, there is help available.
Chapter 7 or Chapter 13 bankruptcy is a way to eliminate debt and get a fresh start on the road to financial recovery. Once you file, the automatic stay provisions will prohibit payday lenders and issuers of check-cashing schemes from taking collection actions against you. When your bankruptcy discharge is complete, you will be free of debts owed to unscrupulous lenders.
The Ohio bankruptcy lawyers at Fesenmyer Cousino Weinzimmer in Columbus, Dayton and Cincinnati are ready to make your case an urgent priority as time is of the essence. Take the first step toward debt relief and contact the experienced and compassionate debt-relief attorneys at Fesenmyer Cousino Weinzimmer today for a FREE INITIAL CONSULTATION.
We know what you are going through. We will evaluate your entire financial picture by looking at your income, your debts and your goals, and we will discuss the best fit for your individual situation. We will handle every phase of the process and find what works best for you.
We welcome inquiries from clients throughout central and southwestern Ohio. From our law offices in Columbus, Dayton and Cincinnati, we have helped countless Ohio residents find new hope.
Delaying can only make your situation worse, so call the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today at one of our conveniently located office branches at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati), or email for your free consultation.
Having multiple credit cards has become an American way of life, and it’s not necessarily bad – if you can pay off the balance each month. Unfortunately, too many of us use credit cards to…
Your cell phone is a great convenience, but it also provides a dangerous privacy threat that can have a devastating impact on your finances. By setting up a phony cell-phone account in your name, criminals are able…
When you are feeling financially strapped, it may be tempting to use your credit card to pay your rent or mortgage. Credit cards allow you to postpone coming up with the money for payments, and…