12/06/2012: State appeals court restricts payday lenders’ interest rates

Back

Payday lenders cannot use Ohio’s mortgage lending law to evade the state’s 28 percent interest rate cap on short-term loans, an appeals court said on December 3 in a case that’s been closely watched throughout the state.

The 2-1 decision by the Ninth District Court of Appeals “makes it crystal clear that these lenders cannot make loans in a way that nullifies the state’s short-term lending act,” said Julie Robie, managing attorney of the Legal Aid Society of Cleveland, which filed a friend-of-the court brief in the case.

Click here to read the full story from The Cleveland Plain Dealer.

Additionally, The Plain Dealer issued an editorial on 12/5, highlighting how “Payday lenders deservedly lose on appeal.”

Also on 12/5,   the payday lender Cash America said it would issue refunds to 14,000 Ohio customers it had sued for past-due loans because of “technical errors” in legal documents.   The announcement comes on the heels of Monday’s decision by the Ninth District Court of Appeals that Cash America’s Ohio division, which does business here as Cashland, improperly made payday loans under the state’s mortgage lending act.   Click here to read this full follow-up story.

2012
News
photo
Working Mom Wins Back Withheld Paycheck
When she was ready to finish her cosmetology training, Ms. Davis gave one month’s notice to the daycare center. About a week after her last day of work, she couldn’t understand why her paycheck didn’t show up as a direct deposit in her bank account.

Read More

Learn more about Legal Aid's Work focus.

photo
Board Member Profile: Tim Walters
Tim is a tremendous leader, in every sense of the word.

Read More

Learn more about Legal Aid's Board of Directors.

photo
Legal Aid’s Deputy Director Honored
David B. Dawson is the winner of the 2010 Denis Murphy Award.

Read More

Learn more about Legal Aid.

photo
Legal Aid Prevents Homelessness
Mr. Ponce de Leon negotiated for his client to move out of the property, but the landowner then refused a return of the security deposit and demanded additional funds...

Read More

Learn more about Legal Aid's Housing Practice Group.

  • photo1
  • photo1
  • photo1
  • photo1