Ohio voters will likely vote on state payday lending legislation after a committee to reject the law submitted nearly 219,000 signatures yesterday to put the issue on the ballot.
The Committee to Reject House Bill 545, also known as Ohioans for Financial Freedom, needed to file 55,635 valid signatures to put Issue 5 on the November ballot after a controversial petition process in which thousands of signatures were invalidated.
At the end of August, Ohioans for Financial Freedom submitted more than 422,000 signatures to Secretary of State Jennifer Brunner's office, well over the 241,366 needed to put the issue on the ballot. But because of a paperwork omission by a contracted political consultant and other problems, thousands of signatures were invalidated and the petition fell short of the required number of valid signatures. Under Ohio law, the committee had a 10-day period to collect additional signatures, which ended Thursday.
House Bill 545 was passed last spring and set new restrictions on short-term lending. The law, which went into effect Sept. 1, caps interest rates on short-term loans at 28 percent, sets a maximum loan amount at $500 and limits borrowers to four loans per year, among other stipulations. A "yes" vote on Issue 5 would keep the law and a "no" vote would repeal it.
Kim Norris, spokesperson for Ohioans for Financial Freedom, said the law takes away an important lending option for Ohioans. "We just want the option to take out a loan, pay $15 on a $100 loan, and pay it back in two weeks," Norris said. She also said the law will force payday lenders out of business, destroying 6,000 Ohio jobs.
"I don't ever like to lose any jobs," said Rep. William Batchelder (R), who first introduced payday legislation in Ohio. "But there are some jobs that really aren't very helpful to the economy, and taking this kind of money from the consumers certainly isn't very good for the economy."
According to a report by the Ohio Coalition for Responsible Lending, a group that supports the law, payday lending is a $2.1 billion industry in Ohio that charges more than $318 annually in fees and offers loans at an average annual interest rate of 391 percent.
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Viewing Comments 1 - 4 of 4
eugeno
posted 10/02/08 @ 1:42 PM EST
If someone bounces a couple of checks at a service charge of $30 each, a payday loan is a big bargain.
I would rather pay $15 per $100 borrowed than $30 each for a bounced check. (Continued…)
Casey
posted 10/02/08 @ 1:49 PM EST
"I don't ever like to lose any jobs," said Rep. William Batchelder (R), who first introduced payday legislation in Ohio. "But there are some jobs that really aren't very helpful to the economy, and taking this kind of money from the consumers certainly isn't very good for the economy. (Continued…)
Yes on Issue 5
posted 10/02/08 @ 6:13 PM EST
It's a shame this initiative seems ready to make the ballot, but I hope the people of Ohio all vote YES. We don't need the pay day loan sharks here.
They tell us they're just providing a "choice" but who would choose to pay 391% interest?
Vote Yes on Issue 5!
SwKr
wilks101
posted 10/02/08 @ 6:16 PM EST
This election has me very worried. So many things to consider. About a year ago I would have voted for Obama. I have changed my mind three times since than. (Continued…)
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