Vote puts squeeze on bad credit loans in Ohio.

Lenders are focusing more on services like pawn brokering and gold buying, and some are applying for licenses under other Ohio loan laws. Consumer advocates plan to take a close look at what lenders are doing.
Payday loans work this way: A borrower goes to a check-cashing company and writes a check. The company gives the person cash, minus a fee, and agrees not to cash the check until his or her payday.
Voters on Nov. 4 approved a new law that cuts the annual percentage rate that payday lenders can charge from an average 391 percent annual rate to 28 percent, and limits the number of loans customers can take to four per year. It is among the strictest laws in the country.
More than a dozen other states and the District of Columbia also have laws cracking down on payday lending. Arizona voters on Nov. 4 rejected a ballot initiative paid for and written by the loan companies to allow them to continue charging high interest rates on small loans.

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