Payday lending attracting scrutiny - Springfield News Sun- Topic: Cash Before Payday
When Diane Fahl finds herself facing a financial emergency, she says her only option is to turn to a payday lending store where she can get fast cash to hold her over until her husband’s next paycheck arrives. The number of Clark County’s payday loan stores, shops like Check Into Cash and CheckSmart, has increased from four to 16 in the last decade, according to the Ohio Coalition for Responsible Lending. The average two-week loan amount, $328, will ultimately cost a borrower $637 in fees at the end of the 12-loan cycle. Darryl Dever, spokesman for The Ohio Financial Services Association, which represents payday lenders, said that most people use the service because they have a short-term need. The legislation may put some lenders out of business, lowering fees to $12 for a two-week $328 loan. Learn more
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