Ohio Payday Loan Laws Update

Ohio’s attorney general has approved proposed language
for use in a petition drive seeking to repeal new payday loan regulations set to become effective in 2009.

Supporters of the payday loan industry required AG Nancy Hardin Rogers to OK the language for petitions seeking to get a referendum for the law’s repeal on the November ballot.

Rogers approved as “fair and truthfu”l the petition drive’s summary of the pertinent portion of the law.

The new law, if it actually becomes effective in 2009, caps annual interest rates at 28%, down from 391%.

Gov. Ted Strickland on June 2 signed the bill that puts the new restrictions into effect. Payday lending businesses point out that the law change would force them to close offices, lay off thousands of employees, and remove another financial choice Ohio residents currently have .

Rather than regulate the payday loan product out of business, if the new law were to take effect, it would force Ohio payday loan consumers to apply for payday loans via the Internet or call centers.

Regulators cannot put an end to demand for payday loans! At best, they simply force consumers to reveal their social security and bank account information to payday loan companies residing in other states or offshore.

Additionally, the state loses the revenue derived from licensing and auditing, employment and sales taxes. It’s ridiculous!! Why not let the market dictate rates and fees by allowing competition to exist? Guess they THINK they know what’s best for ALL of us.

Comments ( 3 )
  • Steve says:

    The fact that they AG isn’t permitted to comment on the merit of the referendum is probably a good thing for the national payday lobby. There aren’t any merits! The Ohio referendum process is meant to be used for citizens to overturn legislation with which they disagree. However, it’s not the average joe that’s trying to overturn the law, it’s the national payday lobby out to protect its its ability to make profits off the backs of poor and working class Ohioans. Let’s hope Ohio’s voters are keenly aware of the lengths to which the industry will deceive them to make a profit.

  • admin says:

    How about a little freedom of choice!

    Ohio Attorney General Nancy Hardin Rogers on Thursday approved language proposed for use in a petition drive by payday lenders seeking to repeal a statewide crackdown on the industry.

    “She said her task under Ohio law was to rule on the truthfulness and fairness of the proposed summary and not comment on the merit of the proposed referendum”.

  • John says:

    The Attorney General rejected the first two petition summaries as unfair and not truthful (the national payday lobby was lying) and said the third would be very difficult for the average voter to understand. It’s too bad that the national lobby has to stoop to these tactics in order to get a referendum on November’s ballot. Why doesn’t the summary mention that interest rates will remain at 391% if House Bill 545 is overturned? THAT would be being fair and truthful. How about a little freedom from exploitation?