The Cleveland Heights City Council unanimously voted to pass a ban on new payday loan stores that are not licensed under Ohio's Short-Term Loan Act. The measure is meant to make payday loan terms more borrower-friendly and institute an annual licensing requirement. Until now, payday lenders have exploited a loophole by licensing under similar laws that do not have the same consumer protections. "A moratorium is needed to send a message to these predatory businesses," said Councilman Jason Stein. A court case currently before the Ohio Supreme court, Ohio Neighborhood Finance vs. Scott, ultimately may settle the matter. Cleveland Heights' moratorium, which will not affect existing payday loan businesses, is in effect until a ruling is reached in the court case.