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PAYDAY LOANS: THE CASE FOR FEDERAL LEGISLATION. PEARL CHIN* . In Category Two, six states have small loan laws that allow payday lenders to operate and charge any interest rate that the braska, Nevada, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Texas,. Utah, Virginia 

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Aug 11, 2016 In some states, they are operating under credit services organization statutes, which allow companies to broker loans, such as in Ohio and Texas. Payday lenders charge fees to borrowers for brokering loans that are sold to other lenders, sidestepping some states' laws capping interest rates.