Ohio Lenders Can Hide Facts That Make Loans Riskier, Court Says

Ohio lenders don’t have to disclose to borrowers information they are unaware of that could increase their risk of defaulting on a loan, the state Supreme Court ruled Wednesday in a win for the banking industry.

The justices, ruling in Huntington National Bank’s favor in a case over $77 million in defaulted loans, said it wouldn’t adopt for Ohio a reading of federal law and legal doctrines that say lenders must disclose facts that increase the chances a borrower will fall behind on payments or default, beyond what’s expected.

With a bank, “absent an established relationship of special trust or ...