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Written by Jamie Simpson, LawServer Attorney-Editor
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Last Updated November 7, 2008 |
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Voters in Ohio approved the ballot initiative known as Issue 5, which maintains a 28% cap on annual percentage rates charged by payday lenders, reports the Cincinnati Enquirer. Supporters of the measure claim that payday lending is a predatory practice that targets low-income individuals, charging the equivalent of a 391% APR. Business models are also believed to encourage a cycle of debt, with most customers borrowing 8 to 9 times a year. Payday lending businesses argue that the measure will result in 6,000 jobs lost and will reduce options for citizens in this struggling economical climate.
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