Ohio lawmakers passed payday lending reform in 2018, capping fees and interest. That didn’t stop lender from finding a workaround.

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The 34 complaints to the Ohio Attorney General in 2019 and 2020 paint a similar picture: People thought they had received payday loans but had actually obtained lines of credit in amounts far greater than they requested.

paint a similar picture: People thought they had received payday loans but had actually obtained lines of credit in amounts far greater than they requested. Even after they paid off their original loans, consumers said in the complaints they still were on the hook for fees to keep open a line of credit they never wanted and for interest on the larger loan.

“Bear Ohio has no affiliation to CheckSmart or any of the Community Choice Financial family of companies, and CheckSmart received no compensation from Green Bear Ohio as part of this program,” according to the company’s statement. Marc Dann, a former Ohio Attorney General who represented the consumer whose default prompted Thomas to scold Green Bear, said he believes the interest and fees on the loans Green Bear offered at CheckSmart stores far exceed the 28% limit the legislature imposed on payday lending. Dann said he is considering legal action against at least one other company in Ohio that has made similar loans.

Williams fought back, saying in court documents that she wanted to recover the principal, annual charges of $150, a credit investigation fee of $10, plus the interest she paid and other costs. She argued that the loan was void because it violated the state’s payday lending laws. Cleveland.com/The Plain Dealer reached out to Kevin Murch, the lawyer who represented Insight Capital.

Sharon Price, who lived in Cincinnati, complained to Yost’s office on Oct. 14, 2019. She said in a recent interview that her son had been accepted into Wright State University, and she wanted a small loan to purchase some items for his dorm room.

 

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