Ohio Payday Loans on Ballot
Payday Loan Business May Be Voted Out of Existence in Ohio
Most if not all payday lenders could not continue to stay in business with a 28% APR cap on payday loans. To avoid having to stop doing business in Ohio, payday lenders formed a group called "Ohioans for Financial Freedom." This group began a petition drive to put an initiative on the November ballot that would repeal part of the law that caps the interest rate.
Ohioans for Financial Freedom have already been running advertising to encourage people to vote for the repeal of HB 545. Their view is that Payday loans are good for emergencies, such as car repairs. If someone needed to get a car part, they could borrow $100 and pay back $115 on payday. Payday loan companies employ about 6,000 Ohioans. Should the law not be repealed, they would all be out of work.
The Ohio Coalition for Responsible Lending is one of the groups that are working to have the ballot measure defeated. They explain that the payday lending model is flawed by design. There are numerous stories of people who got caught up in an endless cycle of taking out a loan, and not being able to pay it back without getting another loan, and end up being sucked into a financial whirlpool. They believe that the 6,000 jobs lost would not be value-added jobs.
Ohio voters will finally decide in November. According to a Zobgy poll taken in May 2008, 84% of voters felt that it should be up to the individual how he or she acquires credit. 70% said the government should not be telling people whether or not they could get a payday loan.
Intense political advertising from both sides of the issue may make this a closer vote in November than it would be if voted on today. One thing that is certain, people in Ohio will be talking about this issue and the other referendums on an already crowded ballot.
Published by Rick Beryl
Originally from Ann Arbor, MI, I reside in a small town in western Ohio. I've worked in fast food, frozen novelties, market research, a warehouse, and delivered pizza. I've been hourly and salaried and eve... View profile
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8 Comments
Post a CommentFIY, If the APR goes down to 36% NO PAYDAY Lending Co. could stay in business Hello ITS OUR CHOICE!!
FIY, If the APR goes down to 36% NO PAYDAY Lending Co. could stay in business Hello ITS OUR CHOICE!!
I have eldery friends that can't barrow from there family to purchuse they monthly medication that they need, whats the harm to barrow $100 by there choice to pay there medical bills and pay it back in 1 month. If the government strips us from this finical choice ask yourself what will be next?? Just a thought...
Kathleen,
If you want voters to have their say in November, why is it that you don't want voters to have the right information? You should be willing to tell voters that a 'No' vote will result in 391% APR payday loans. You should tell them that voting 'yes' will get them lower interest rates!
391% is way too high! Vote yes on issue 5 for lower interest rates!
Thank you for your comment, Kathleen. I wrote an article earlier about paid sick days, one of the other ballot issues you mentioned. http://www.associatedcontent.com/article/916377/ohio_paid_sick_days_initiative_on_ballot.html?cat=8
Oh for cripes sake... the cigarette and alcohol companies spend BILLIONS ever year on the advertising of items that can cause many health related issues, including DEATH!! The Payday Industry has a right to spend it's money how it chooses, just like I should. Pretty sure a payday loan has not contributed to anyone's demise.
And newsflash for those that don't understand-- a 2 WEEK loan is not the same as an ANNUAL loan-- payday loans in Ohio are 15% for the length of the contractual term. Regardless if you borrow $100, $300 or $500-- it's 15% of principle. They are not inended to be or are YEARLY LOANS!! So the fallacy that they are 391% is inaccurate!! Also Ohio doesn't offer rollovers.
Are you aware there will also be 2 other initiatives on the ballot in Nov?? What's the harm in letting Ohioans have their say??? What are the critics so afraid of?? And where does the intrusion of the Ohio General Assembly stop? I want financial freedom and to make my own choices!!
The payday lobby is attempting to hijack Ohio's election in November. They are spending literally millions on advertisements trying to convince Ohio voters that 391% interest amounts to financial "freedom" and "choice." The out-of-state payday lobby (Ohioans for Financial Freedom) is also engaging in some below the belt tactics by telling voters that their citizen free "citizen referendum" will actually "lower interest rates" on payday loans!
Here's a good video of Ohio voters in the flesh, sharing their experiences with payday lending petitioners: http://www.youtube.com/watch?v=zDoeXujagE4
VOTE YES ON ISSUE 5 to lower interest rates!
http://www.yesonissue5.org
I CANT BELIEVE THAT THE PAYDAY INDUSTRY IS RUNNING ADS THAT MAKE PEOPLE BELIEVE THAT ITS ONLY $15 FOR A $100 LOAN. WHILE THAT IS TRUE THEY DO VERY FEW $100 LOANS. THE AVERAGE IS CLOSER TO $500. THOSE COST $75 FOR 2 WEEKS AND AT THE $800 MAX IT COSTS $120. NOT QUITE THE DEAL THE INDUSTRY IS TRYING TO SELL.