Payday loans have changed significantly over the years. These changes are for the better. They have changed the regulations, as well as the way those loans are funded. Additionally, it’s the way these loans are managed to ensure that those who borrow money are not borrowing more than they can afford. How have these loans specifically changed in the state of Ohio.
Payday Loans in Ohio
New regulations were rolled out in April of 2019 for Ohio. These laws were designed to create a more “short-term” way of thinking, and they have a longer repayment period. This would mean a longer loan repayment period, as well as a cap on interest.
They do still exist in Ohio, but they are not without restriction and regulations. The savings is believed to be more than $74 million dollars per year. That’s a tremendous amount of money.
Less interest, capped rates, and the limits on what can be borrowed are improving life for those who want to use a temporary means of borrowing money without it being painful. Putting limitations on what can be borrowed will greatly increase the likelihood that individuals can borrow money.
The weight off borrowing money by traditional means is hard for those who only need to borrow a small amount. Oftentimes it’s only for emergencies, and those who would not typically get approved for a standard bank loan can turn to a short-term loan.
There are now 1 in 10 Ohians who take out a payday loan at some point in their lives. There was an actual House Bill that passed in order to make this happen. The bill had 180 days to pass, but most business owners for these establishments were concerned about how this would impact their business.
They feared shutting down due to hardships all related to finance and what they would lose as a result of the changes. There were hundreds of locations that made requests in order to work under the new laws. There were some franchises that were suggesting they might stop offering loans, but they might till offer a service for cashing checks.
Many of the finance companies expressed their concern over what it’s like to face these types of fees. Many of them took the position that they would not be able to maintain their business as long as these changes were put in place. Cashing checks has been a consistent source of income for them.