Issue 5 has to be the most infuriating piece of excrement on the November ballot. It’s a “vote-no-if –you-mean-yes” issue that will have voters so thoroughly confused that they will give up and vote ”no,” which is exactly what the promoters want. This issue would repeal the Payday Lending reforms passed by the Ohio Legislature.
I received a mailer showing the sweetest looking elderly man and woman, dressed in their Sunday church clothes, looking for all the world like your favorite aunt and uncle made vulnerable by an uncaring government. “Defend your financial privacy and financial options. Vote No on Issue 5,” it proclaims.
The mailer claims “A new state law will create a massive government database to track and limit the number of loans Ohio consumers can take out.” Yup, that’s HB 545, designed to halt the abuses of the Payday Lenders who charge 391 percent interest on short-term loans. A database included in the legislation -- the one the ad alleges will cause “Social Security numbers, retiree benefits, and personal medical records [to be] lost by careless employees or stolen by Internet hackers”—was included to make sure the lenders don’t send borrowers over to a companion lending agency to borrow money to repay the first lender in an endless debt circle.
Call it “Nanny Government” if you will, but why should we stand by and let financially vulnerable Ohioans get stuck in a Payday Loan trap? Our state legislature passed this legislation because payday lending abuses were all too obvious.
Curious thing: The website of Ohioans For Financial Freedom, the promoters of this effort, included the endorsement of a 79-year-old Seven Hills woman who, when I called her, said, “I don’t know why they would have me on that list. I never agreed to anything like that.”
I checked public records for other Cleveland area endorsers. One person identified herself as backing the issue, and the daughter of a Lorain County endorser said the woman works for Cashland, a payday lender. Records show another supposed Cleveland person living in Hinckley, OH. I left callback numbers for three on the list, but most had disconnected numbers or no data found.
Personally, I’d like to see maximums put on ALL interest rates charged in this state. Have you ever missed a credit card payment date and seen your interest rates soar? Some people have told me of rates up to 31 percent! Is that even legal?
And while we’re at it, a student told me her bank not only charges a flat overdraft fee, but it adds an $8 per day fee for additional days she hasn’t repaid the overdraft. She said the bank is taking her whole paycheck. So, now how will she buy food? You guessed it, panhandling and/or payday lenders!
If you want to keep the Payday Lending fees in check, vote YES on Issue 5.
UPDATE: Keeping Ohio's new law capping payday loans at 28 percent is an issue important enough to bring together Attorney general candidates Richard Cordray (Democrat) and Mike Crites (Republican) and former attorneys general Jim Petro and Betty Montgomery (both Republicans). Today (Wednesday) they urge Ohioans to vote "yes" on Issue 5.
http://blog.cleveland.com/openers/2008/10/former_ags_candidates_say_vote.html
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9 comments:
UPDATE: Another "endorser" returned my call. An employee of a payday-lending company, she said, "Think of all of us who'll lose our jobs if this passes!" She claims there aren't other jobs to take its place. So, we can understand why she is backing the issue! -- R Palmer
The payday lending industry has gone to great lengths to confuse and deceive Ohio voters, even lying to them directly by suggesting that a 'no' vote will lower interest rates. This is patently false! You'll also notice their ads with lack any reference whatsoever to payday lending! They want to scare us with continual pounding of references to "limited financial freedom" or "big brother." What they fail to mention again is that they've got their own big brother, Teletrack, which is an UNSECURED database that includes all types of invasive information about you so that they can extract the maximum amount of money out of consumers. We need to end predatory payday lending in Ohio and start offering affordable loans at 28% APR. That's why I'll be voting YES on issue 5!
Once again, payday lenders are not to blame for people's inability to be accountable for their decisions, choices and actions. A payday loan is an option and alternative for short term loans. A one time loan is $15 per $100 borrowed. FACT
Where is the heck being raised about the credit cards rates & bank fees??? THOSE ARE MORE EXPENSIVE than payday loans. My bank charges $28-38 per bounced check!!!! Are you kidding me??? I'd much rather do a payday loan for $100 and get charged $15, then bounce a $100 check and pay $33 (TWICE THE AMOUNT of a payday loan) for check fees.
Why would anyone want the government to telll them how, where and when they can spend THEIR money?? Next up, GUARANTEED-- the Ohio General Assembly will continue to further restrict our ability to manage and control our finances. This is the same body of government that is 60 MILLION DOLLARS in the Red. How IRONIC!!!!
Oh and doing away with payday lenders doesn't ELIMINATE the need for short term loan products. NOT one bank or credit union has stepped up to meet that need.... so basically thousands of Ohioans are going to be out of luck if this law passes.
And gee given the precarious economic state we are in as a nation-- this is most certainly a good time to be laying off 6000 Ohio Citizens, closing 1600 stores and doing away with a fincancial option. (HEAVY SARCASM!)
VOTE NO ON ISSUE 5!!!! Preserve freedom of choice!!
Do these advocates think were dumb in Ohio or what.To BILL FAITH MOST OF US CAN READ AND UNDERSTAND WHAT WE READ.THATS NOT IT, THE REASON YOUR GOING TO LOSE IN NOVEMBER IS BECAUSE YOU DONT HAVE THE RIGHT TO TELL PEOPLE HOW THEY SHOULD SPEND THERE MONEY.You dont speak for the majority of Ohioans like you led the politicians to believe.Bad laws get overturned because there bad.FACE THE FACTS.VOTE NO ON 5
Thank you so much for blogging about this -- I haven't had as much time as I should lately to look into these things, and was planning on giving myself a crash course right before heading to the polls. I could see myself having a "wtf" moment after looking at Issue 5!
Why are you deleting posts that support the Opposition? Why create a blog if you cannot have a professional debate. If you wish to have followers, write an article for the newspaper rather than post a blog that allows comments. Its pathetic really.
Anonymous, Please pardon the delay in posting your comments. I have a life.
BTW, your opinions would have more weight with me if you had the courage to say who you are! -- RPalmer
From: http://www.usatoday.com/money/perfi/credit/2007-01-24-debit-card-fees_x.htm
1) "The average fee for overdrawing your account — by check or debit — reached a record high of $27.40 last year, up 11% from five years before", according to Bankrate.com
$27.40 is ABSOLUTELY APPALLING!!!!
2) "In 2006, financial institutions earned $53 billion in overdraft fees, a 58% increase from 2001, estimates consultant Moebs Services. "
53 BILLION DOLLARS and a jump in 5 years by over 50%--- are you freaking kidding me??!!! Gee-- I wonder why thousands of Ohioans decide and want to get a PD loan instead??? Newsflash />>>> they are HECKUVA LOT CHEAPER!!
VOTE NO on ISSUE 5!!!!
Checking account overdraft fees can hit a person if s/he isn't careful, but most banks will set up "overdraft protection" up to a limit of $500 or more, depending on a person's credit. If you have that and still bounce checks, you've already written yourself a $500 loan. How much more do you expect the bank to forward you?
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