Vote No on Ohio Issue 5

The payday lending bill that was passed by the state legislature is unnecessary and based on the following myths:

People are being victimized: Victim how? Every Payday Lending clearly displays the fee for the cash advance on signs all over the wall. The Customer signs an agreement and they acknowledge that they understand the fee upfront. There is no way a borrower can say they didn’t know the fee.

391% interest rate: Using annualized interest rate for what is the vast majority of time a two-week loan is disingenuous. The reality is the average is that a customer pays $15 per 100 for a two-week advance. Period. No one pays 361% interest. They pay 15 dollars no more no less. Compare this to the unexplained fees of the credit card companies that can turn a $500 debt to thousands in months.

A cycle of debt: These are two-week loans period. Can people find a way around the rules and use multiple payday lenders to extend the debt. Yes. Are they being stupid in doing so? Yes. But they are no victims. The vast majority of payday lending customers are not frequent customers.

36% interest rate is reasonable: These companies give these short-term loans without credit check. Their default rate is high. Such a limit on interest rates would result in losing money on every transaction. Thus would put an entire industry out of business.

There are too many Pay Day Lending Companies: Myth. Quite clearly there is a need for them or they would not survive. Most people that use these agencies have no other choice then writing bad checks. Lets see, $15 fee per $100 or $50 overdraft fee and possible criminal charges. Seems to me the payday loan is a much better choice.

This Payday lending bill in Ohio is another attempt to protect people who first of all are not complaining, and second of all do not need protecting. It eliminates the one choice many citizens have to obtain short term funds in an emergency.

There are plenty of victims from fraudulent and shady financial practices. However those are not in the payroll lending industry, they are with banks, finance companies, credit card companies and mortgage companies. It is time the Ohio General Assembly look at real problems rather then creating victims

Vote No on Issue 5.

Payday Lending Law Costs Eastern Ohio

The effects of the latest government "protect us from ourselves law" the payday lending bill, are being seen already in a number of communities in eastern Ohio. One Zanesville based firm has now closed stores in Cambridge, Byesville, Barnsville, Coshocton, Logan, St Clairsville and stopped the opening of a new store in South Zanesville.

In a time of economic tightness in retail this law has resulted in 7 new empty retail spaces in small towns in Ohio from this one company alone. 7 locations that paid rent, taxes, and provided jobs to citizens in this hard hit area of the state.

7 towns where an option was taken away from its citizens so that now in a short term financial emergency they must either try to float a check which could result in $50 or more overdraft fees, or result to credit cards whose application fees, late fees, annual fees and interest rates way over shadow the $15 these citizens could have paid for a 2 week $100 loan.

Thanks for protecting us ohio legislators and Governor Stickland

The Myths about Payday Lending

People are being victimized: Victim how? Every Payday Lending clearly displays the fee for the cash advance on signs all over the wall. The Customer signs an agreement and they acknowledge that they understand the fee upfront. There is no way a borrower can say they didn’t know the fee.

300% plus interest rate: Using annualized interest rate for what is the vast majority of time a two-week loan is disingenuous. The reality is the average is that a customer pays $15 per 100 for a two-week advance. Period. No one pays 361% interest. They pay 15 dollars no more no less. Compare this to the unexplained fees of the credit card companies that can turn a $500 debt to thousands in months.

A cycle of debt: These are two-week loans period. Can people find a way around the rules and use multiple payday lenders to extend the debt. Yes. Are they being stupid in doing so? Yes. But they are no victims. The vast majority of payday lending customers are not frequent customers.

36% interest rate is reasonable: These companies give these short-term loans without credit check. Their default rate is high. Such a limit on interest rates would result in losing money on every transaction. Thus would put an entire industry out of business.

There are too many Pay Day Lending Companies: Myth. Quite clearly there is a need for them or they would not survive. Most people that use these agencies have no other choice then writing bad checks. Lets see, $15 fee per $100 or $50 overdraft fee and possible criminal charges. Seems to me the payday loan is a much better choice.

This Payday lending bill in Ohio is another attempt to protect people who first of all are not complaining, and second of all do not need protecting. There are plenty of victims from fraudulent and shady financial practices. However those are not in the payroll lending industry, they are with banks, finance companies, credit card companies and mortgage companies. It is time the Ohio General Assembly look at real problems rather then creating victims where there are none.