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Lakewood Extends Ban on Payday Lenders

Ohio voters approved to cap the rates that payday lenders can charge in interest, however city officials say many of them continue to operate using “loopholes” in the 2008 Short-Term Lending Act.

Lakewood Extends Ban on Payday Lenders

It doesn’t look as if any new payday lenders will open up in Lakewood any time soon.

Lakewood City Council voted Monday to extend the ban on cash-advance businesses opening up in the city.

“If there’s an argument that these things are illegal, then we don’t want them opening up,” said Kevin Butler, the city’s law director, adding that the city is still waiting for a ruling on whether the businesses are legal.

“(The Ohio Supreme Court) will be able to determine whether this type of lending is legal,” he added.

There are two short-term loan businesses in Lakewood, but both of them are grandfathered in.

Ohio voters approved to cap the rates that payday lenders can charge in interest, however Butler said many of them continue to operate using “loopholes” in the 2008 Short-Term Lending Act.

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