Ohio payday lenders pinched by new law

COLUMBUS, Ohio, Nov. 8 (UPI) -- Tuesday's vote in Ohio that payday lenders may not charge more than 28 percent interest is driving some firms from the state, officials say.

The Cincinnati Enquirer reported Saturday that lenders say the rate is too low for them to continue doing business in Ohio. The newspaper said the rate caps the interest for a two-week loan for $100 at about $1.08.

Check 'n Go, which has 71 outlets in the state, for instance, said it is mulling its options after voters approved the limits passed by lawmakers and signed by the governor.

"We will continue to explore opportunities permitted under Ohio law to support our customers with financial products and to provide jobs for our associates," spokesman Jeff Kursman said.

The Ohio Department of Commerce said it has received 702 applications to become finance companies to lend under the state's Small Loan Act.

Cash America International, based in Texas, said some of its stores in Ohio would take place over the coming months.

"Sadly, this outcome will force us to close about 43 of our Cashland lending locations, leaving about 150 of our hard-working co-workers without jobs," Chief Executive Officer Daniel Feehan said in a statement.