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.