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Scott did not repay the loan on December 19, and Neighborhood Finance filed suit in Elyria to recover the money. A magistrate concluded that Neighborhood Finance was using its lending status under the MLA to avoid the limitations established in the STLA, which the magistrate held should govern this loan. The municipal court cashmax payday loans the magistrates decision. Neighborhood Finance appealed, but the Ninth District affirmed the lower courts ruling.
The company filed an appeal with the Ohio Supreme Court, which agreed to hear the case. In todays opinion, Justice French explained that the MLA provides for either interest-bearing or precomputed loans.