Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Ohio Court Cracks Down on Attempt to ‘Evade’ Payday Lending Law

Aug. 24, 2022, 7:49 PM

A first-of-its-kind small verdict against a short-term loan debt collector could auger broader punishments for payday lenders that violate Ohio law.

Columbus Municipal Court Judge Jodi Thomas ruled that an Ohio payday lender had unlawfully evaded the state’s restrictions on short-term loans, and the borrower didn’t have to fork over the $600 plus interest. That’s because her loan was set up in a way with no logical purpose other than to skirt restrictions in the state’s 2018 payday lending overhaul, Thomas said in her Tuesday ruling.

The decision could have broad implications for the industry, which has adapted ...