By Gina Mace
Special to the Beacon Journal
CUYAHOGA FALLS: City Council on Monday evening unanimously passed legislation to limit auto-title loan services.
Title loan stores will be categorized with pay-day loan operations and pawn shops, which have stricter zoning laws than other businesses.
The local law limits short-term lenders to one store per 10,000 residents. Because the city’s population is less than 50,000, one of the four existing stores would have to close before another could open.
The stores also are limited to two areas of the city: Graham Road near the Stow border and Howe Avenue.
An auto-title loan company applied to locate in Cuyahoga Falls last fall. The company rescinded its application in January.
When a consumer borrows from an auto-title loan company, the person is using the vehicle’s title as collateral. Consumer advocates say auto-title lending doesn’t assess the borrower’s ability to pay back the loan.
Ward 3 Councilman Victor Pallotta is working on a resolution to present to City Council that would urge Gov. John Kasich and the Ohio General Assembly to take action on auto-title loans.
Pallotta said the stores charge interest in the triple digits and prey on the poor and desperate.