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Predatory Lending and Home Rule Authority
On November 20, 2006, the Ohio Supreme Court issued a decision examining municipal home rule authority to enact
ordinances regulating predatory lending practices. The Court found that
Substitute House Bill 386,
enacted by the Ohio General Assembly in 2002, is a general law of statewide concern.
As such, Substitute House Bill 386 pre-empts municipal lawmaking authority, rendering any ordinance
that conflicts with the state predatory lending law unconstitutional. This important case clarifies the limits of
Home Rule authority and resolves a conflict between two opinions issued by different Ohio Appellate Courts on the predatory lending laws.
American Financial Services Association et al. v.
Cleveland, 112 Ohio St.3d 170, 2006-Ohio-6043.
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