Category: Ohio

  • Payday lenders lose in Ohio and Arizona

    The people have spoken. I’m not surprised that something as polarized as payday lending could make it through the popular vote. Let’s face it, payday lending has a image problem. This group is constantly being attacked by consumer groups.

    The majority of people drew a line a payday lending. In Ohio, many lenders are closing down. Cash Land is closing 1/3 of their stores (appr. 40 stores). Cash America is closing down 43 locations.

    Cash America said Wednesday the remaining Ohio locations will begin offering services beyond payday loans such as short-term unsecured loans governed by a different statute. Some locations also will purchase gold and operate as pawn shops.

    Arizona also suffered a blow when their initiative was voted down. Arizona’s payday lenders are not shutting their doors just yet. They still have unitl July 1, 2010 to pursuade legislators to do something.

    Is this trend?

  • Payday lenders helped by Ohio Christian Alliance

    The Ohio Christian Alliance is urging voters to vote “no” on Nov. 4th and allow payday lending to continue in Ohio.

    What people who oppose payday lending won’t tell you is that if the rates get capped at 28%, no one will be getting a cash advance. Banks will use overdraft fees to replace payday loans. The Ohio Christian Alliance probably realizes that having an option is better than having zero options.

    Read the full aritcle here.

  • C.O.A.S.T sides with payday lenders

    In an interesting turn of events, the Coalition Opposed to Additional Spending and Taxes (C.O.A.S.T.) is urging voters to shoot down the law recently passed in Ohio that would cap rates, but more importantly establish a state regulated database.

    This article is very interesting for a couple of reasons. I would like to share the comments made by Jason Gloyd, who is the chairman of C.O.A.S.T.

    “Orwellian” provisions, such as the establishment of a database of loan transactions with personal information; the limiting of payday loans to four per person per year; and an education program for anyone who takes out a second loan within 90 days.”

    “Let us make our own decisions and stop interfering with our lives,”

    “Most importantly, stop tracking our behavior – and stop trying to modify it.”

    Amen brother. In an attempt to help people, the government is just making people dumber. If we take away people’s ability to make financial decisions, we keep them at the bottom.

  • 13,000 Ohio signatures thrown out

    “On Friday, payday industry-backed Ohioans for Financial Freedom agreed to take back 12,928 signatures it had paid California-based Arno Political Consultants to collect in favor of a fall ballot issue that would ask voters to repeal the new law.”

    13,000 signtures is not a lot considering the total required signatures is about 241,000. Still it’s an obstacle that needs to be over come.

    You can read more here.

  • Politicians being politicians

    This whole rate cap issue has become a great tool for politicians to hang their hat on. Did anyone tell them that the people who are happiest about this, do not use payday loans or do not want to pay them back.

    Ask people who use the product point blank. Would it bother you, if they took the payday loan option away? I bet most would say, yes.

    Here is what I read here:
    “State Rep. Tyrone Yates (D-Cincinnati) would appreciate some measure of credit for the 28% interest rate cap imposed by the new payday lending bill, HB 545. He points out in a press release that it is closer to his proposed 25% rate cap than to the 36% limit sought by others. “My colleagues have joined me in offering strong reform for this predatory industry,” said Rep. Yates in a press release that characterizes the new bill as drawing upon his own. “We have come together, Democrats and Republicans, agencies and non-profit groups, legislative and executive branches to do the responsible thing for Ohio’s consumers and pass a bill that will be a model for the nation.”

    These politicians are just trying to score points. They’re not getting into the real issue. There is a huge credit gap beyond 36%

  • No means Yes

    It took 5 hours, but the Ohio Ballot board was finally able to make both sides happy. In the upcoming election, the PDL industry looks to overturn the referendum that will cap interest rates at 28%. If enough voters vote “No” the cap goes away.

    It’s worth noting that there is a lot more regulation on the industry besides the rate cap. Most of which is welcomed by the lenders in order to help self regulate their industry.

    The PDL industry still has to get 241,365 valid signatures before it’s officially on the ballot. I don’t know how many more they need or when the deadline is.

    You can read more about the actual process here.

  • Ohioans for Financial Freedom Commercial

    You can view it here. I think the commercial make a point, but it’s not very ernest. Forget the commercial for a second and let’s hear what people had to say. It’s near the bottom of this link.

    I’m sick of hearing people correlate the mortgage crisis with payday loans. It’s imflamatory and doesn’t even make sense, if you knew anything about the payday loan industry. People really need to be honest about this subject. People over-paid for their homes and got easy credit. Now they want to bail these people out, although they forced housing prices up for good credit borrowers. Thanks for rewarding fiscally responsible people.

    I tell people that they should not take out a payday loan, just like I tell them to pay off their credit cards each month. How do you educate people if you pull their feet out of the fire everytime because you feel sorry for them.

    Here are the comment I liked:

    Posted by jmacleve on 08/12/08 at 8:30AM
    “I do agree with the part about choice (and what jaquick said). You don’t want to use a payday lender? Don’t. But stop telling other people how to run their lives.
    Yeah, people pay extra for these loans. But I see more money going over the counter for lottery by people who probably can’t afford it than any payday loan. Why aren’t you patronizing types lobbying to end the lottery? After all, it feeds on a lot of the same people!”

  • Ohio still in the air

    Payday lenders are trying to repeal part of HB 545, specifically, the part about the interest rate caps.

    This article provides some insight on the ballot process in Ohio. “Instead of asking voters to repeal the entire law, payday lenders are asking for only a partial repeal of House Bill 545 – the portion that eliminates the current payday interest rates.”

    Since HB 545 passed, over 550 lenders had applied for new licenses allowing them to charge 28 percent plus a one-time $15 origination fee on short-term loans. Personally, I don’t see the reward associated with this much risk. It wouldn’t even cover the loan losses.