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2 May 2008
Ohio Bill to Push Payday Borrowers Online
As Ohio Legislation begins to put the squeeze on payday lenders, you can expect to see a rise in online
payday loan activity. The legislation would cap the payday loan interest rate at 28%. Meaning payday
lenders in Ohio could only charge $5 interest on a $500 loan. This makes no economic sense for the
lender to take on the high risk for such small return.
Opponents of the bill says this could cost 6000 jobs in the Ohio Payday Loan industry.
This is all great, but these actions does nothing to curb the need for cash advances! People will still
need quick loans for unexpected events. Where will the good citizens of Ohio go for payday loans when all of the
advance lenders have closed?
They will hit the Internet look for the cash they need. Online cash advance loans and payday lending
will see a sharp rise if states continue their attack on advance lenders.
Online Payday Loans will continue to rise for a number of reasons.
- State Legislation capping interest rates.
- The privacy getting a payday loan online offers.
- Convenience applying for a loan at home provides.
- Growth in technology that has made it easy to get a loan online.
In short, States can try to curb cash advance - payday loan lending all they want. It will not stop the
need for fast cash.
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