Cuyahoga Falls cracks down on payday loan shops
28, Dec 2007
Cuyahoga Falls -- This city, home to more payday loan businesses per person than either Summit or Cuyahoga counties, is looking to limit lenders.
A law adopted unanimously this month restricts cash-advance stores to one for every 10,000 people and requires them to be at least 1,000 feet apart. The law took effect immediately.
It's the first Ohio municipality to limit the businesses based on population, according to the Ohio Coalition for Responsible Lending. Ohio has more than 1,500 payday lending outlets, and they are coming under scrutiny.
The General Assembly is considering legislation that would cap interest rates, and the attorney general has held public hearings on industry practices.
"We don't need a payday loan on every corner," Mayor Don Robart said. "The more of those you see going up, it tends to hint at the idea that the community might have a problem. . . . I think for the image of my community, I would rather see them limited."
The nearby village of Lakemore voted last year to require lenders to be at least 750 feet apart.
Dozens of cities across the country have enacted similar laws.
Payday lenders allow consumers to borrow against their next paycheck. Exempt from usury laws, the loans carry an annual interest rate of 391 percent.
Source : http://www.cleveland.com/
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