Moody's may cut Checksmart

Moody's Investors Service said it placed the ratings of Checksmart Financial Co. under review for possible downgrade.

The rating action reflects recent legislative action in the Ohio state legislature related to the payday lending industry, the agency said.

If enacted into law, the proposed legislation would have a material negative effect on Checksmart's business, S&P noted, adding that the proposed legislation would substantially alter the payday lending business in Ohio by capping the annual interest rate, lowering the maximum amount of a loan, extending the minimum life of a loan, capping the number of loans a consumer could obtain per year and mandating that consumers who take more than three payday loans in a period of 90 days attend a financial literacy program.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.