New law limits payday loan businesses

CUYAHOGA FALLS, Ohio (AP) — A new law in the northeast Ohio city of Cuyahoga Falls places a limit on the number of payday loan businesses.

The law restricts cash-advance stores to one for every 10,000 people. That would limit the city to five loan stores, but existing ones will be allowed to stay open.

Mayor Don Robart says the number of payday lenders was hurting the city’s image.

The loan stores allow consumers to borrow against their next paycheck, often at high interest rates.

The state Legislature is considering a bill that would cap interest rates, and the attorney general has held public hearings on industry practices.