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Short term lenders score small victory in Ohio

Jun 16, 2014 Philip Burgess

The life of a short term lender isn't easy. Like other business owners, these professionals have to contend with the tasks required of a leader - keeping current on overhead expenses, doing payroll, ensuring they're constantly providing a good quality product, contending with changing laws and so on.

On top of that, these individuals also have to deal with a lot of flak from critics. Some government leaders and consumer interest groups have been very vocal about their opposition of the alternative finance industry, despite the clear and obvious benefits they provide the masses who want to stay financially above water. Companies in this sector sometimes have to contend with restricting laws passed by these critics.

However, that's not the case currently in Ohio. According to The Associated Press, though there was a 2008 law in the state that severely cut down the loan fees that can be tacked on, a recent ruling determined that some such financial products are perfectly legal. Specifically, a two-week loan taken out by a man in Elyria was ruled perfectly legal by the Ohio Supreme Court, though he was fighting the 235 percent interest charge.

While this might seem like a lot, the source reported that the judges, in a unanimous vote, decided it was fair. After all, had he paid on time, that interest would have amounted to less than $6.

This clearly shows proof of lenders wanting to work with borrowers to hash out the best deals for all involved. It's sometimes only when individuals decide not to pay loans back that this industry comes into question.

As The Columbus Dispatch pointed out, some groups are up in arms over this recent ruling. As such, lenders might want to be prepared to defend their position as one of the best ways for individuals who may not be well-off or don't have a pristine credit history to have ready access to cash when unexpected expenses arise.