Banks offering customers loans against their paychecks

DAYTON — Banks in Ohio have been filling the gap left by payday loan shops, which were nearly driven out of the state in 2008 when lawmakers capped the interest rates they charged. Several big banks with offices in the Dayton area now offer their own short-term loans against customers’ paychecks, generally in the form of checking account advances. The banks say their deposit- based loans are safer than so-called predatory loans from payday lenders because they require borrowers to have a history as a bank customer, which allows the banks to better assess their customers’ ability to repay. But critics note that both types of loans carry triple-digit annualized interest rates...