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News - Local Payday Lender Closing

Despite a push to repeal a statewide crackdown on payday lenders in Ohio, some local companies are still closing. The Ohio attorney general approved language proposed in a petition drive that would let voters decide if the new cap on lenders should be abolished.

Gov. Ted Strickland signed a bill last month that put restrictions on payday lending companies. The new law caps annual interest rates at 28 percent, significantly less than the current rates, which are close to 400 percent.

Anthony Riccadonna manages the America Check Exchange in Steubenville. Riccadonna said that despite the petition drive, he is still forced to close his Steubenville store this week, putting nine employees out of work.

“It’s going to help the bigger corporations to possibly keep their doors open. As far as us, it’s not got to help because we’re so small,” said Riccadonna.

The new law takes effect on Sept. 1. The state Legislature passed the bill over the objections of industry leaders.

Strickland and some lawmakers said high interest rates have trapped customers in a cycle of debt.

The payday loans industry and supporters of the repeal must collect 240,000 signatures by Aug. 31 to get the referendum on the ballot.

Source: http://www.wtov9.com/news/16876791/detail.html