Will Flood Victims Turn to Ohio Payday Loans?
Ohio consumer advocates are concerned that victims of last month’s floods may turn to faxless payday loans to help them get by.
Columbus attorney Paul Bellamy with the Equal Justice Foundation says the short-term loans come with fees that translate to triple-digit interest rates. He says borrowers get caught in a “debt trap” because they often can’t pay up in two weeks when the money comes due, so they keep rolling over the personal loans and stacking up the charges.
John Rabenold is a spokesman for Check ‘n Go, a payday lender based in Mason. He says he doubts that the flooding has brought in more business.
Rabenold also says the cash loan online industry provides an important service for people in tight financial spots with nowhere else to turn.