Recently, Richard Cordray stepped down as director of the Consumer Financial Protection Bureau. However, if Ohio consumers miss him, they can likely vote for Cordray in the upgoing gubernatorial primary election. He is expected to announce his intention to run for governor of the Buckeye State any day now. Because of the payday lending issue, this is an interesting situation for Ohio consumers.
Because of a big loophole in Ohio’s payday lending regulations, a lot of experts see payday loans as a big problem in the state. So, Cordray’s Payday Loan Rule may have had a big impact on the payday loan industry in Ohio. However, now the CFPB is in different hands. It is therefore unlikely that the Payday Loan Rule will ever tale effect. In fact, house lawmakers just introduced a bipartisan bill to overturn the Rule. Of course, if Cordray wins, it’s unlikely that Ohio consumers have seen the last of his attempts to reform payday lending in the state.
Is the Overturning of the CFPB Payday Lending Rule Good or Bad for Ohio Consumers?
When it comes to introducing tighter payday lending restrictions in Ohio, lawmakers and consumer advocacy groups are strongly divided. Those who support tighter restrictions believe that high-interest payday loans throw cash-strapped consumers into a vicious debt cycle. On the other hand, those who oppose payday loan restrictions believe that there is a real need for these types of loans. Especially among low-income consumers. They feel that making payday loans less available would take credit options away from those who need them the most.
Regardless of which side of the payday loan fence they fall on, most Ohio residents agree that the state’s current regulations are flawed. Although, technically, Ohio’s Short-Term Lender Law (STLA) offers a lot of protections to borrowers. It’s just that payday lenders in the state usually register as mortgage lenders under Ohio’s Mortgage Lending Act (MLA). This status allows them to charge borrowers much higher interest rates than the STLA allows. The MLA even allows these lenders to creatively tack on additional fees. For example, there is as a service charge for “finding the loan.”
How Ohio Consumers Can Avoid Payday Lending Altogether
Even Ohio consumers who see a need for payday lending in the state probably don’t believe that the high-interest loans are a long-term fix for financial issues. The truth is that budgeting to establish an emergency fund and improving your credit score are the best ways to get ahead financially. While not necessarily easy, allotting money toward savings every month allows Ohio consumers to navigate emergencies without relying on payday loans. Then, improved credit scores give consumers access to loans with good interest rates when they absolutely have to borrow.
The first step toward building a better credit score in Ohio involves checking your credit reports from the three major credit bureaus. This allows you to see exactly where you stand with your credit, and gives you the opportunity to look for credit report errors. Unfortunately, creditors and credit reporting agencies frequently make mistakes. This mishandling of consumer information results in inaccuracies on credit reports that often bring down credit scores.
So, before entering into any credit repair plan, visit www.annualcreditreport.com, and request free copies of your credit reports from TransUnion, Equifax, and Experian. The Fair and Accurate Credit Transactions Act (FACTA) allow you to do this once every 12 months.
Then, while reviewing your credit reports, if you find credit score damaging errors, contact the Law Offices of Gary D. Nitzkin in Ohio. The credit pros at our firm fix credit issues for free, so you don’t have to worry about handling the error disputing process on your own. Instead, an experienced credit attorney will do whatever it takes to get you clean credit reports at absolutely no cost to you.
The Free and Legal way to Get Better Credit
Don’t let errors on your credit reports bring your credit score down. At the Law Offices of Gary D. Nitzkin, P.C., we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? The law allows us to collect our fees and costs from the defendants in any successful action. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (216) 358-0591 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/ohio/credit-repair/.