Why it's harder to get a payday loan in Ohio.

Around April of 2008, several politicians in Ohio is either considering the Ban of payday loans in the state of ohio. The politicians feel like payday loans are loan sharks taking advantage of the low-middle or lower class of the work force.

Some ideas as to not completely ban payday loans in Ohio, was to give it a maximum interest rate cap of about 36% instead of 391%. Fees now are usually $15 for every $100 borrowed for two weeks, which calculates to an annual percentage rate of 391 percent.

With this rate cap, it is estimated that most payday loans lender in ohio will have to shut down their operations which will lead to about 6000 jobs lost because of this change.

The disadvantage is not only will there be a massive lay offs, many of the lenders will no longer lend to ohio residents which will mean that ohio residents needing emergency cash will no longer have access to these cash. If there's an emergency car break down, or an emergeny medical bill, these residents will have to bare the consequence of these changes.

Many residents as many as 30,000 residents using payday loans sent in their request to take a second look at the current payday loans industry developments in ohio.

We have now seen several online payday loan lenders issuing a decree to stay away from ohio residents, this means, even if they apply online the lenders will avoid them and will not give them a payday loan any more.

This payday loan industry change in ohio is yet to be felt by ohio as well as the residents of ohio.