Ohio Payday Lending Limits

PAYDAY LENDING LIMITS MAY RETURN TO THE BALLOT THIS FALL WE VOTED ON THIS ONCE IN 2008

28% EASILY PASSED, BUT THE INDUSTRY FOUND WAYS AROUND THE LAW AND CRITICS SAY PAYDAY LENDERS, KNOWN BY DIFFERENT NAMES PERHAPS, CHARGE INTEREST RATES OF UP TO 600% ADVOCATES ARE COLLECTING SIGNATURES FOR A QUESTION ON NOVEMBER'S BALLOT JACKIE BORCHARDT, WHY DIDN'T THE 2008 LAW FIX THIS? >> WELL, YOU KNOW, THE 2008 LAW PASSED, BIPARTISAN BILL THAT PASSED, AND THE INDUSTRY FOUGHT IT UPWARDS OF $20 MILLION AGAINST IT, AND OHIO VOTERS OVERWHELMINGLY SAID, WELL, WE WANT THIS LAW, WE WANT THESE RESTRICTIONS IN PLACE AND WHAT HAPPENED WAS THE LENDERS DECIDED TO REGISTER WITH THE STATE UNDER A DIFFERENT†– AS A DIFFERENT TYPE OF LENDER THAT EXISTED IN THE LAW

SO THEY WEREN'T THEN SUBJECT TO THE CAP, THE INTEREST RATE CAP THAT WAS SET, AND WERE ABLE TO CONTINUE BUSINESS AS USUAL >> WHAT WAS TO KEEP FOLKS FROM DOING THIS AGAIN AFTER THIS LAW? >> WELL, PART OF IT WHEN YOU WRITE LAWS, AND THIS APPLIES TO GUN LAWS, AS WELL AS OTHER THINGS, YOU HAVE TO WRITE THEM VERY CAREFULLY AND THINK HOW WILL THE LAWYERS AND SMART BRAINS TRY AND MANEUVER AROUND IT BUT WRITING LAWS IS NOT ALWAYS EASY, BECAUSE YOU GOT THE OTHER SIDE TRYING TO FIGURE OUT WAYS TO GET AROUND IT >> I HAVEN'T LOOKED AT THE SPECIFICS ON IT, BUT I PRESUME THEY ARE GOING TO CLOSE THE LOOPHOLE IN A WAY THE PENDING LEGISLATION IS THE INDUSTRY IS MORE OF AN UMBRELLA CATEGORY SO IT CAN'T GET AROUND IT

>> I'M STRUCK BY THE FACT, THOUGH, THAT THIS BILL HAS BEEN, AS YOU SAID, MIKE AT THE OUTSET, STUCK IN THE LEGISLATURE AFTER VOTERS SPOKE AS LOUDLY AND AS CLEARLY AS THEY DID ON THIS ISSUE, I THINK IT IS A DISGRACE THE OHIO LEGISLATURE HAS NOT PUT AN END TO PREDATORY LENDING ONCE AND FOR ALL I THINK IT'S JUST ONE MORE EXAMPLE HOW TOO MANY LEGISLATORS ARE WILLING TO TRADE THEIR CONSCIENCES FOR CAMPAIGN CONTRIBUTIONS >> PART OF IT ALSO IS GOING TO DEPEND ON HOW MANY SIGNATURES AND WHO'S GATHERING THE SIGNATURES IF THE LEGISLATURE FEELS THE HEAT THESE PEOPLE ARE GATHERING SIGNATURES, THEY DON'T WANT THAT KIND OF THING ON THE BALLOT

SO WE'LL SEE HOW REAL THEY ARE IN BEING ABLE TO GET ENOUGH SIGNATURES TO ATTRACT ATTENTION >> THE ARGUMENT IS SOME FOLKS IN POORER NEIGHBORHOODS RELY ON THESE TO GET THEM THROUGH A COUPLE DAYS AND IF YOU LOSE THEM PROPERLY, THE PAYDAY LOAN CAN TIE YOU OVER BEFORE YOU GET PAID >> THE PROBLEM IS MOST DON'T TAKE OUT ONE LOAN IF THEY NEED TO GO TO A PAYDAY LENDER THE FIRST TIME, ODDS ARE THEY ARE PROBABLY NOT GOING TO BE ABLE TO PAY IT OFF WITHIN THE SHORT TIME FRAME THEY NEED TO PAY IT OFF, SO WHEN THE DUE DATE COMES AROUND, THEIR NEXT PAYCHECK, THEY DON'T HAVE THE MONEY, SO THEY HAVE TO ROLL IT OVER INTO A NEW LOAN AND THAT'S HOW YOU GET TO 600% APR AND THE INDUSTRY HAS SAID, YOU KNOW, THEY PROVIDE A SERVICE AND THERE ARE A LOT OF OHIOANS WHO DON'T HAVE BANK ACCOUNTS OR, YOU KNOW, NEED TO USE THESE SERVICES, AND THE ADVOCATES WOULD SAY, YOU KNOW, LENDING CONSUMER ADVOCATES WOULD SAY OTHER STATES DON'T HAVE THE PROBLEM THAT OHIO HAS

THEY PUT IN RESTRICTIONS AND THE INDUSTRY STILL OPERATES THERE