12
Nov

Payday Loan Job Losses in Ohio

Check ’n Go payday lending chain said Tuesday that it will close about half of its Ohio stores over the next several months.

CNG Financial said it will close 36 of its 71 stores in the state, eliminating up to 75 jobs. The company didn’t specify which sites would be shut down, but a spokesman said closures would be based on lending volume.

The Cincinnati-based company has seven Central Ohio payday lending shops.

Sixty four percent of Ohio voters cast their ballots in favor of Issue 5, which supported a law capping interest rates for payday lenders at 28 percent a year. The payday lending industry fought a $13,000,000 battle to repeal portions of the law, House Bill 545, saying the interest rate cap and other limitations would drive many of them out of the state. Payday lenders tried in vain for a rate that allowed them to charge a 391 percent APR.

Texas-based Cash America (NYSE:CSH) announced that it would shut down 43 of its 140 shops in Ohio.

Remaining Check N Go stores will offer loans permitted under the Ohio Small Loan statute, as well as check-cashing services. CNG operates more than 1,300 Check ’n Go locations in 31 states.

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Comments ( 4 )
  • payday loan says:

    Applying for a payday cash loan can be a big help anytime we experience some financial difficulties, which are not uncommon nowadays especially when we are in need of cash for payment of basic needs, utility bills and times of emergency. Our salaries may not be able to come in time for payment of these immediate expenses, and at times like these, a need for a short-term loan becomes inevitable.

  • Payday loans says:

    Steve is mislead because he, like the rest of the voters refused to study the issue. No lender is more upfront with disclosures of fees and interest that the payday loan industry. It is not deceptive. It is not designed to trap people in debt. I am sure that Steve never tried the service out. If he had he may very well be part of the 93% of borrowers that enjoy the business and use it wisely. Sadly it is “people C” that have decided “business A” and “person B” should not get along so well so I will do something about it.

  • Steve says:

    I’m glad Ohio voters saw through the lies and deceptive advertisements of the payday lending industry and voted overwhelmingly to pass issue 5! This is a very positive development for Ohio’s families, particularly those who were caught in the never-ending cycle of payday lending debt. Ohioans realized that payday lending is a defective and predatory product designed to trap people in debt. Voters strongly repudiated over a decade of predatory payday lending! This is a great victory for Ohio’s consumers!

    P.S. Given that only 36 of 71 Check ‘n Go shops are closing, it appears that the industry lobby’s cries about 6,000 jobs was a tad overblown!

  • Jared says:

    Maybe the silver lining in this whole payday loan legislation change will be the innovative solutions that come about. http://www.yadyap.com is one of the possible solutions to the payday loan debacle. YadYap (payday spelled backwards) is a new peer-to-peer lending/borrowing platform specifically for payday loans. It will offer an auction system that will allow lenders to bid on payday loan requests from borrowers.

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