HB 545

Let me start by saying thank you for your service and for your hard work raising your 3 children. I'm sure that can be a handful! Certainly there are instances that arise when we all need access to cash relatively quickly and most of us have been caught of guard by $35 NSF fees at our bank. I'd say that I hope legislation is introduced that will serve to reduce fees on those as well. It appears that you are not a regular user of payday loans (once or twice when things get really tight). This is not the situation for the average borrower of payday loans. Many take out 11 or 12 or more per year and according to the industry's own researchers, many end up in a cycle of debt for 18 to 24 months. So, for nearly 2 years, some people are taking out payday loan after payday loan, getting further and further into debt. Payday lending negatively impacts nearly 300,000 people in Ohio and Ohio House Bill 545 caps interest rates on payday loans, in an effort to end or slow the cycle of debt for those borrowers. The bill does not ban payday lending or force stores to close, it simply requires that payday lenders charge lower interest rates, something that is good for you as a customer. Vote Yes on Issue 5 for lower interest rates!

When I researched Payday loans a while back, I discovered that it's not just about limiting rates. In order for these businesses to stay in business, they have to charge exhorbitant rates. One study in England showed that it costs at least $25 for a $200 loan. Charging lower fees means the company loses money and will go out of business. I am against payday lending and have stated this before. Dadof3, my hat is off to you. Sounds like you're working hard to raise your family. Here'e my suggestion, next time you have a few extra dollars, stash it away. Once you get $200, treat it like a payday loan. "Borrow" the money, then pay it back with $250. Do this four times a year and you'll have an extra $200. As it is, you're giving these guys $200 a year of your hard earned money.

Check out this video! http://www.youtube.com/watch?v=zDoeXujagE4

Vote Yes on Issue 5 for lower interest rates! We need to keep the reforms of payday lending that passed in June. HB 545 lowered interest rates on payday loans from 391% to 28% APR. This is a good thing for Ohio consumers and allows payday lenders to stay in business! http://www.yesonissue5.org

While I can agree that a 28% rate cap sounds like a good move, it is not the way to handle this issue. The APRs charged by payday loan companies vary based on the duration of the loan. A person who borrows 100.00 owes 115.00 their next payday. If their next pay is in 14 days, the APR is 391.07%. If their next pay is in 28 days, the APR will lower by half. These are in fact simple interest loans. Regardless of when payment is due, the amount the customer pays is EXACTLY the same. This service has kept many people from incurring bounced check fees, higher interest rates on credit cards, utility reconnection fees and multiple late fees. What would you do if your fuel pump went out on your car on Monday and had no way to get to work. You get paid on Friday, but your boss says if you don't make it in to work by Thursday, you are out of a job. Who is going to help? Do you think the auto shop would say "OK, I understand." NO! They would hold the car until the job is paid in full. Fortunately, a good majority of people have other options to fall back on like a credit card. There are a lot that don't have any cushion at all. Any of you out there that think this is not a ban on payday lending are mistaken. If each loan brings in a quarterly profit of $1.28, how long could they stay in business. These stores couldn't even pay the electric bill with that kind of profit! All this bill is doing is taking away the publics right to make thier own financial decisions. Do you really want the government to take away your choices? How about we let the government decide which bills you should pay and on what day they should be paid. I ask you, who is going to step up and help these people when this choice is taken away from them? I assure you, noone. The rug is being pulled out from underneath them. This industry has already been dragged through the mud enough, and with all that the public now knows about payday lending, if a person still thinks it is their best or only option, they should have the right to make the decision for themselves!

Again, I hate to repeat myself again and again (here and other places), just because you let someone know that you are ripping them off, doesn't make it ok that you're doing it! Payday loans are a defective product that is designed to trap people in debt! Their business model is dependent upon trapping people in debt. There are alternatives available for consumers. Ohio credit unions offer a product called stretch pay and the Ohio Treasurer is in the process of creating a "link deposit" program. Other small loans are available elsewhere. The other key thing to remember is that HB 545 does not ban payday loans, it merely caps interest rates on payday loans at 28% APR! Payday lenders can still provide loans to Ohio consumers under HB 545 at a much more reasonable rate! VOTE YES ON ISSUE 5 to Keep HB 545!

The payday lobby has been celebrating their gained endorsement of the Ohio Grocers Association. What they aren't touting is the reason why! The President and CEO of the Ohio Grocers Association, Tom Jackson, also happens to be the father-in-law of former Republican candidate and Check 'N Go lobbyist, John Rabenold! If you recall, John Rabenold raised over $100,000 from the payday lending industry for his race for state representative. Nothing like some more undue influence being wielded by the payday lending lobby in Ohio! Vote yes on issue 5 for lower interest rates!

An OHIOAN standing up for my right against Governmental Abuse of Power. It is the representative's duties to REGULATE the state, not the people and their choices. This is a clear abuse of power. A few comments state that this bill doesnt ban payday loans. Yes it does. This cap allows a little under 2.00 profit on the loan. That is BEFORE overhead is considered. It costs more to print the contract out and pay the teller for 10 minutes than the profit received. This APR is a severe misrepresentation of the interest rate on Pay Day loans. Please take the time to read prior to making assumptions about this industry... You borrow $100, you pay $15 for that 100 dollars and pay it back. APR 15% Opposing Representatives that probably failed their first year of algebra, and didnt make it to trigonometry think the following. $100 borrowed ONCE for a year-----BUT: $15 paid every two weeks (26 times) for that ONE LOAN (390$ over one year) 100/390=390%APR That WOULD be 390% APR, however, the theory of a customer only borrowing the $100 once but continuing to pay $15 every two weeks is ILLEGAL. The state of Ohio doesnt allow “roll-overs”. Roll-overs are defined as letting a customer borrow an amount of money for 2 weeks, and if they cannot pay it back, paying the fee to extend the loan another two weeks. ILLEGAL, see Ohio Revised Code 1315. So the true math is defined as below: $100 borrowed every two weeks = 2600 $15 paid to borrow every two weeks = $390 390/2600 = 15% APR Additionally, There are intelligent groups that actually SUPPORT Payday lenders and understand the ecomonic impact the passage of this bill could have--6,000 jobs gone, $176 MILLION in yearly SALARY being the top, thats in addition to the 8,000 DHL jobs gone. In one fell swoop you are looking at 14, 000 jobs GONE. The Ohio Chamber of Commerce, as well as the Ohio Grocers Association speak out on behalf of Payday lending and the effect of its eradication...Check it out. According to paydayfacts.org, The Ohio Grocers Association has backed Ohioans For Financial Freedom. The group is stating that consumers are going through a lot of economic hardships, and taking away additional sources of financial help is not the way to go. The other aspect they are concerned about is the fact that if this legislation takes effect, 6,000 employees in the payday lending industry could loose their jobs, resulting in their bills and loans becoming delinquent ultimately affecting other financial industries. This group believes that consumers should be able to make their own decisions about borrowing money, and the government should not be making that decision. Either way, the payday loan lead type is a very demanded lead type with Leadpile Lead Exchange. We shall see if Ohio falls in the footsteps of some other states developing legislation in this industry. Ohio Chamber of Commerce Backs Financial Choice, Jobs and Competition August 25th, 2008 • Ohio Chamber of Commerce Backs Ohioans For Financial Freedom To Keep Jobs and Consumer Choice COLUMBUS, OH – The Board of Directors of the Ohio Chamber of Commerce has given its support to Ohioans For Financial Freedom saying imposing overbroad government regulations is not the way to revitalize Ohio’s economy. “The Ohio Chamber champions free enterprise and economic competitiveness and we believe HB 545, as passed by the Ohio General Assembly, runs counter to our mission”, said Andrew E. Doehrel, president and CEO of the Ohio Chamber of Commerce. “This new law, if not reined in by Ohio voters, will drive an entire industry and 6,000 good-paying jobs out of our state.” If HB 545 goes into effect it means the loss of nearly $300 million to Ohio’s economy including $172.6 million in annual employee payroll, benefits and payroll taxes, $76.8 million lost in rent revenue to landlords across the state, and $23 million lost in advertising vendors. In response to this legislation, most of the major payday lending companies have announced they will close stores in Ohio putting as many as 6,000 jobs with benefits in jeopardy. “As we strive to turn around our economy we must allow the free market to meet consumer demands and facilitate the creation of much needed jobs”, said Doehrel. With 1,600 stores in the state, consumer demand for short-term credit is clear. Payday advance fills a need not met by traditional financial institutions and is a convenient, less costly option for short-term, unsecured credit. Removing access to reasonably-regulated storefront payday lending will force consumers into more expensive, and possibly even less-desirable, alternatives. Ohioans For Financial Freedom is working to repeal section (3) of HB 545 offering consumers more lending options. Founded in 1893, the Ohio Chamber of Commerce is Ohio’s largest statewide business advocacy group. The Chamber works to promote and protect the interests of its members - large and small - while building a more favorable Ohio business climate.

Thanks for the press release! The payday lobby refuses to tell Ohio voters that their product traps people in debt. The payday lobbyists want us to think that because there is a 24 hour cooling off period between paying one payday loan off and getting another one at the same shop, that no one is going back to that shop 24 HOURS LATER or going to ANOTHER payday lender to pay off the first. It's outrageous that they keep pulling that line - it's very, very misleading! They also keep saying that 391% APR isn't just that - 391% APR. $15 on $100 for a two week loan, ANNUALIZED is 391% APR!!! It's a way for consumers to see how badly they are being ripped off and it's disclosure is required by federal law! Payday lending in its current form, with interest rates almost always reaching 391% APR, is predatory and is fundamentally flawed. House Bill 545 made payday loans more fair and less harmful to the average Ohio borrower. This is a good thing for our state and we should vote 'yes' on issue 5 to uphold those reforms. Vote yes on issue 5!

Wow Regular--what a creative name--it sums up your comment..AVERAGE. Your post is an average opponents words. Unresearched uninformed uneducated. You WOULD think my comment is a Press Release--however it involved a little thing call RESEARCH to end up with the most important part --FACTS. The opponent will never educate himself so that he makes informed decisions. He is a follower. Hey Regular Puppet--are the strings on your limbs uncomfortable? For the rest of us that care about facts Do the Math, understand this is NOT the governments job to start eradicating businesses especially around--ELECTION TIME--you think they REALLY care? Nah--it makes them look better to sway against "financial traps" as they put it to make their platform "look better" but again--its a guise. Regular--do you like fast food? Well--I think its time to pull your strings away from fatty tempting disgusting food--you cannot make your OWN decisions, so lets create a bill to eradicate the fast food joints. They are predatory with their tempting crispy fried and cheesy delights. BAN THE BURGER--its the only choice to protect the "stupid" ohioans that cannot make decisions on their own....Does this thought disgust or outrage you? THEN VOTE NO ON ISSUE 5--it is OUR right to make our OWN decisions. Protect our options, choices and freedom. VOTE NO on ISSUE 5.

My local tool rental joint will let you take one of these home for $10.00 per day. It's worth about $100. Isn't that, like 3,650% or something? Hey, I'm no math whiz, but I know enough that these guys are taking advantage of us poor wheelbarrow deprived souls. It's just not right. Seriously, these guys need to be taken down.