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Tuesday, May 06, 2008

2,500 rally in support of payday lenders

An estimated 2,500 supporters of the payday-lending industry held a rally today at the Statehouse to urge the Ohio Senate to reject new legislation to regulate the industry.


Read the Dispatch's story here


55 Comments:

at 2:53 PM, May 06, 2008 Anonymous Anonymous said...

2000 employees and 500 poor people beholden to those dirtbags, no doubt.

 
at 3:15 PM, May 06, 2008 Anonymous Anonymous said...

I went into one of those offices and tried to photo the extremely over the top intrests rates they charge and was immediately ejected. They are crooks praying on those who are already behind the eight-ball financially. They are border line loan sharks with intrest up to and over 99.9%. People who use these people feel they have no other recourse, only to find themselves in so much worse hurt after.

 
at 3:20 PM, May 06, 2008 Anonymous Anonymous said...

the borrower is slave to the lender

 
at 3:25 PM, May 06, 2008 Blogger donnazoo said...

why "Dirtbags" My daughter is a cashier at one of these places, and far as I know, NOBODY is dragged in these places and forced to take a loan. Most of the people who use these places have no bank accounts for various reasons, including hiding from child support.This law is just another intrusive law, with government thinking they know best. And as for you dear anoymous, I have a feeling your angry because you are a BEHOLDEN one.

 
at 3:38 PM, May 06, 2008 Anonymous Anonymous said...

I once, and very briefly I might add, worked in Administraton for one of these pay day companys. If there was indeed 2,500 supporters, I am sure it was verious employees threatened to do so or they would loose their job. These companies prey on the lower class like vulchers and should be outlawed.

 
at 3:41 PM, May 06, 2008 Blogger Brad said...

Useful for bypassing paying your child support...one more reason to get rid of them...

 
at 3:42 PM, May 06, 2008 Anonymous Anonymous said...

I would like to know how many of the "supporters" were paid to attend the rally.

 
at 3:43 PM, May 06, 2008 Blogger Brad said...

This comment has been removed by the author.

 
at 3:48 PM, May 06, 2008 Anonymous Doug said...

So the fact that your daughter works at one legitimizes their existence? I think not. I'm glad that the state finally realizes how detrimental these businesses can be and are putting controls in place to keep people in bad situations from being overly exploited. I only wish that the state would've stepped in years ago and put controls in place that may have averted the mortgage crisis Ohio is in.

 
at 4:02 PM, May 06, 2008 Anonymous Anonymous said...

Has anyone really tried to figure out the interest rate? Please, 390%, I pay more for my overdraft fees; $35 for a $10.90 check, where is the law regulating that? Oh, I forgot there is no money in it for the state and the Governor can't get his slot machines put into bars. Read what this bill really is about, credit unions providing payday loans and slot machines in bars. If payday loans are so bad then why are credit unions permitted to offer them instead. Don't always listen to the media when making a decision regarding payday loans.

 
at 4:07 PM, May 06, 2008 Anonymous Anonymous said...

Will USBank still be allowed to do the exact same thing? Yes, and with a higher interest rate as well. Yet nothing will be done to them. I would assume that other banks do and will offer the same service, charging a higher interest rate than our industry does. The sky high rates are calculated over the course of a year, not the two weeks that the loan is taken out for. For a $100 loan, the payback is $115, not $200. Yes, there are some problems with the industry that need to be corrected, but the entire industry should not be shut down. By the way, Gov. Strickland wants to put Keno machines in adult venues. So which is worse, responsibly lending money to people who need the service to get by or introducing and encouraging gambling into bars and other adult clubs?

 
at 4:10 PM, May 06, 2008 Anonymous EMF said...

According to this article, the current annual interest rate on payday loans is 391%. It's difficult to imagine any situation where 391% annual interest would be considered fair or even reasonable. Yes - it's essential that people learn personal financial responsibility. But as a social worker who works with low-income families, I want to point out that not everyone who uses these services is a child support-dodging illegal alien. For many people who have grown up within the cycle of poverty, there wasn't anyone to teach financial responsibility in the first place.

Other financial institutions in the US are subject to government regulations (banks, credit companies, mortgage lenders, etc.), so it seems only fair that payday lenders be treated the same.

 
at 4:17 PM, May 06, 2008 Anonymous Anonymous said...

The post about the "legit bank" fees is a great comment. Where is the outcry to control them? Just shows government is controlled by who has the better lobby.

 
at 4:25 PM, May 06, 2008 Anonymous Anonymous said...

payday loans are slave masters like back in the old south. once they have you they own you until you buy your way out, which is next to impossible.they are convienent of course, but it's no more than a trap that is hard to get out.

 
at 4:26 PM, May 06, 2008 Anonymous Anonymous said...

We want our 40% service fee loans !!!
Save our bullet-proof glass storefronts in the ghetto !!!

 
at 4:31 PM, May 06, 2008 Anonymous Anonymous said...

I love the commercials where they show the motherly / fatherly Leave-It-To Beaver type PayDay Loan employees saying "that they love their jobs because they get to help people."

 
at 4:41 PM, May 06, 2008 Anonymous Mike said...

It is a sad day in America where 6,000 hard working people face losing their jobs because others in this country lack the self control to once in awhile say “no” to payday loans. Great job consumer advocates! Hey, keep track of those employees who are about to lose their jobs. You will probably be working with them in the future. I mean really, who is the bad guy here? A company offering a legitimate service that has the ability to be abused or a company that will successfully lobby to wipe out an entire industry? To some, alcohol is hard to say “no” to as well as McDonald’s. I guess they are next. I’m just really glad that I live in a country where a trend of decreasing personal responsibility is developing. The next time I run someone over while drinking a beer in the drive-thru on the way to cash my check, I’ll blame General Motors’ for not making softer bumpers on my truck.

 
at 4:46 PM, May 06, 2008 Anonymous Anonymous said...

The Goodwill offers a "GoodMoney Payday Loan" for $9.90 per $100 which they say they need to break-even which equates to a 252% APR.
They must be scumbags too?

 
at 4:48 PM, May 06, 2008 Anonymous John said...

I love how easy it is for people to post comments as anonymous. Why don't you stand behind your comments.
The fact of the matter is banks are the money behind this legilation. 75% of bank revenues come from overdraft, hence the big buildings downtown. Payday loan companies are a threat to the revenue stream, and people like the misguided "anonymous", just follow along without any of their own thoughts (see lemming).

 
at 4:48 PM, May 06, 2008 Anonymous Anonymous said...

For what I know and have witnessed, payday loans are frequently used for drug trafficing. Unmonitored thru credit bureaus a person can get $500 or more from 3 or more places in one day, then turn it into 5000 profit unnoticed. Useful to people that need them so why not creditable banks and credit monitoring. A loans a loan and should give you a good score if used.

 
at 4:50 PM, May 06, 2008 Anonymous Anonymous said...

Anyone here willing to help me out when my job is taken away with this bill? Or should I just put my faith in my worthless state school degree, a faltering economy, a state government needing to clean up after a sex scandal, and a growing unemployment rate? I know, I'll just win big with good ol Ted's slot machines!

 
at 4:56 PM, May 06, 2008 Anonymous John said...

I thought people who were interested in thinking for themselves might appreciate this article.

Ban Payday Loans? Big Mistake
Christian Science Monitor
May 6, 2008
National

By Tim Miller

Fed up with politicians incapable of balancing budgets? Well, now state legislatures across the country want to take a crack at balancing your checkbook - whether you like it or not.
Paternalism - the idea that government must take care of adults because they aren't able to do so themselves - is the ideology behind the wave of politicians determined to limit how much and how often Americans can borrow money. By putting stringent restrictions on borrowing, these politicians would effectively ban the practice of short-term "payday" lending, no matter how many people use it responsibly in times of crisis.
For those who enjoy access to high lines of credit, these short-term loans - which essentially let customers borrow cash from their next paycheck - may be a bad deal. But many of the less prosperous don't have such attractive alterna-tives to the kind of loans that politicians like to demonize.
So when Democratic presidential candidates Barack Obama and Hillary Rodham Clinton prey on people's emotions by calling short-term lending "abusive" and "predatory," the result of their actions will be leaving low-income borrow-ers stranded in debt.
Most financial institutions aren't willing to cover the risk that these loans incur, so real alternatives don't exist. Why is that the case? Consider this scenario.
In some states, lawmakers have tried to pretend that they're not banning the service, only capping its price at a "rea-sonable level." If a complete stranger walked up to you on the street and asked you for a $100 loan and promised to pay it back in two weeks, but only give you $1.38 for your troubles - would that be a "reasonable" deal? Of course not. And no business could survive making these kinds of loans.
In fact, after Washington set a 24 percent cap on interest rates last fall, payday lenders left the city in droves, leav-ing consumers hard-pressed to get cash in a pinch.
So once the paternalistic rhetoric is switched off, payday lending's usefulness to borrowers in tight spots is fairly easy to understand. The quick cash means that the car gets an urgent repair, a critical check doesn't bounce, or the heat-ing bill gets paid. Used responsibly, payday lending can help a borrower stave off financial calamity.
And it's that idea of responsibility that the activists and lawmakers trying to kill payday lending can't get their heads around. Personal responsibility is what makes adult life possible. Take something away because a small minority of adults can't use it responsibly and you treat everyone like children.
The injury on top of the insult is that laws against payday lending do serious economic harm to the people likeliest to use such a service, as confirmed by multiple teams of researchers.
One consequence of payday lending restrictions is that they force would-be borrowers into alternatives that are far more costly. Georgia, for example, has outlawed the practice - mistakenly, as a Federal Reserve Bank of New York study indicates.
The study found that bounced-check fees grew by $36 million and Chapter 7 bankruptcy filings rose by almost 9 percent in Georgia after payday lending was banned. What's worse: Bouncing checks and wrecking your credit rating, or paying a lender $15 for a $100 advance on your paycheck?
Given these facts, it's clear that those guilty of exploitation are not the short-term lenders, but politicians who are trotting out the poor to score a political victory.
The message sent by lawmakers who want to ban payday lending is to declare that consumers capable of opening a checking account and earning a paycheck can't act like adults when it comes to managing a three-figure loan. This les-son from government will only erode personal responsibility, to the detriment of a healthy society.
Americans don't need their money managed by paternalist politicians. Government should instead trust that, when given personal freedom and the maximum amount of options, consumers can decide how to responsibly use their money themselves.

Tim Miller is the communications director at the Center for Consumer Freedom, a nonprofit organization devoted to promoting personal responsibility and protecting consumer choices.

 
at 5:04 PM, May 06, 2008 Anonymous Jesse Suttles West Chester said...

Have you ever noticed that there are no banks in poor neighborhoods? No credit unions? There are however, plenty of liquor stores and payday loan establishments. They know exactly who there demographic is and the fact that most are uneducated or irresponsible enough to use their services.
On the other hand, it is a legal business that forces no one to patron it.
I feel that these places are predatory, but what happened to people being reponsible for their own decisions?
Is the gov't going to have to bail these people out along with those who ignorantly signed mortgage papers on unmanageable loans?

 
at 5:22 PM, May 06, 2008 Anonymous Mike said...

Anyone read the front page article in the Enquirer today? Her proclamation of innocence sounds strangely similar to the arguments of those against the evil check cashers... Funny how its always someone else's fault. Back to payday lending: I would love place a wager (once it's legal) ;-) that if it were easier and cheaper to obtain a short term loan, accusations of irresponsible lending would fly (ahem, mortgage industry). Call me crazy but if you falsify your application for a loan, you are a criminal. If you are so horrible with money that banks tell you to take a hike and the hundreds of social service programs here in Cincy can't help you, maybe payday lenders deserve to make $25 for handing you $200-300. I mean, you've already shown that you can't be trusted with a dollar.

 
at 5:26 PM, May 06, 2008 Anonymous Mike S. (Eastgate) said...

If you need a loan and want a better rate (36% Max) try out prosper.com or lendingclub.com. You may find other individuals (real people, not banks) that are willing to lend to you. It could be a great way out of the payday loan cycle of increasing debt.

 
at 5:55 PM, May 06, 2008 Anonymous Kathleen said...

It's a shame so many misinformed people are posting about the payday industry when they obviously are not welll educated in the subject.

First--Not everyone can pay themselves first and save for a rainy day. You're certainly one of the lucky ones if you have a stash of cash saved for all of life's unexpected problems.
Have you ever been through a divorce, ben laid off, had a major medical issue, had to fix a broken car to get to work and keep your job, experienced a death in your family, had an accident, etc? Many people today across the US have similiar problems and need a small amount of cash FAST. Many have poor credit and are unable to use the traditional financial institutions. We help them pay for those things w/out incurring many bounced check fees (at $35 a pop!!) or losing their job or home.

As for "loan sharking"... this isn't the Sopranos gang!! We don't charge "ursury" rates.... our rates are simply calucated DIFFERENTLY, so you can't compare apples to oranges and get a FAIR comparision.

We don't break knees and go door knocking if someone isn't able to pay as agreed.

Anyone who thinks we can decrease our fees to less than what we are currently charging, needs to have a course in Business 101. Feel free to email me for a lesson me_here_in_ohio@ yahoo.com--- I'd be happy to help explain it to you.

This is a regulated industry, many times actually SELF- regulated. We obey the laws, treat our customers with respect and dignity and practice excellent customer service.

We also support our local communities--- Food a thons, Walk a Thons, SPCA Adopt a pet programs, Juvenile Diabetes Foundation, Breast Cancer Awareness, Adopt an Elementary School, etc. We are valued members of our communities and are recognized as providing a necessary service and jobs to many.

Have any of you that are in support of HB 545 ever had to borrow $$? What were your options? What if those options weren't available next time? What would you do?

Have any of you EVER even been in a payday store? You'd be pleasantly shocked and surprised that NORMAL EVERYDAY Ohioans work there and EVEN enjoy their jobs. They are mothers, fathers, sisters, brothers, aunts and uncles--- trying to make a decent living providing an essential service.

Claiming to understand something you clearly don't is meaningless--- unless you can back it up w/proof and factual statements.

VETO HB 545!!!!!!!!!!!!!!

 
at 5:59 PM, May 06, 2008 Blogger tabby said...

just a bit of information

1- this will not do away with payday lending just put a cap on what they can charge.


2-at 90% of the payday lenders you have to have a checking account to get a loan,so most are not in hiding.

 
at 7:37 PM, May 06, 2008 Anonymous Stacy, Cincinnati said...

Hello to all that SUPPORT PAYDAY LENDERS!!!!!!!!, I work for a payday lender, and I LOVE my job and would not trade it for anything in the world. There are a lot of people out there that need a loan for verious reasons, say, your CAR breaks down and you do not have the money to pay for it, What would you do then???? Not pay your Credit Card bill, not make your house payment? Well if you come to a PAYDAY LENDER you would not have that problem, there is not the high charge like it would be if you did not pay your Credit Card bill or House Payment. Everyone thinks that we are LOAN SHARKS, but we are not we are just here to provide a WONDERFULL serivce to our citizens WHO MADE THE CHOICE TO COME TO OUR STORES TO GET A LOAN TO HELP THEM OUT. WE DO NOT DRAG PEOPLE IN BY THERE TOES, we are there becuase HARD WORKING PEOPLE need us. If this bill passes then I will be out of a JOB that I love and will never be able to get back. How would you like it if someone said that you job was going to be taken away, I would BET my life that you would do whatever you could to save your job. PLEASE VOTE NO ON HOUSE BILL 545!!!!!!! KILL BILL 545!!!!! SAVE OUR JOBS!!!!!! PLEASE DON'T TAKE MY MOMMY & DADDY'S JOB AWAY. JUST REMEMBER THERE WILL BE OVER 6,000.00 JOBS LOST, then where will you be if you need a loan, going to a BANK or a CREDIT UNION where you are not GARENTEED a LOAN, just REMEMBER I am sure that each and everyone of us has received a loan or at least thought about getting a loan. JUST REMEMBER VOTE NO HB 545!!!!!! SAVE MY JOB !!!!!!

 
at 9:00 PM, May 06, 2008 Anonymous Anonymous said...

Has anyone stopped to realize that the people who use the payday companies as a means to help with financial difficulties are the teachers who teach our children, the bus drivers who transport our children, the nurses/aides who care for our loved ones?!

Has anyone done the math? People complain about 391.07% interest on a $100.00 loan (for 2 weeks), yet if you overdraw your bank account, even by one cent, the fee is an average of $36.00 plus a daily overdraft fee. What is the interest rate on that???? Somewhere in the ballpark of 900%.

The people of Ohio need to be able to decide what financial options they choose to use. It's sad that people get fat and sue McDonalds, or they burn theirselves on coffee and file a lawsuit! This is crazy!!

You don't see payday loan companies with these big fancy offices because they make so much money from unsuspecting consumers. My own bank charges me a fee EVERYTIME I use my debit card as a debit card. Is this ok??

Finally, payday loans are NOT a way to avoid paying child support! MOST payday loan companies require a checking account, so that is just a crazy thing to say!!!

DLB

 
at 7:07 AM, May 07, 2008 Anonymous Anonymous said...

IF people were FORCED to borrow money at 300%, then yes, it would be an evil thing. But these offices are VOLUNTARY--one CHOOSES to use their services. I myself find them handy when in a pinch.
For the life of me, I just don't understand the problem and the need for legislation. These businesses provide a service. We can use them or ignore them.

We are on the verge of a society and a culture where GOVERNMENT will tell us how many breaths to take per hour. Believe it. Beware.

 
at 7:34 AM, May 07, 2008 Anonymous Anonymous said...

payday lending is nothing more than legalized loan sharking. after hundreds of thousands of good manufacturing jobs have been shipped out of the country by the same people that invest in payday lending companies, why should we be concerned that a few clerks that work for them might lose their jobs. talk about chutzpah.

 
at 10:40 AM, May 07, 2008 Anonymous Anonymous said...

~
"Anonymous said...IF people were FORCED to borrow money at 300%, then yes, it would be an evil thing. But these offices are VOLUNTARY--one CHOOSES to use their services. ...I just don't understand the problem and the need for legislation. These businesses provide a service. We can use them or ignore them. ...
7:07 AM, May 07, 2008"

Hookers provide a service, as well ?

Usury, that's the point, PERIOD !

If they had another option they would use it !

That doesn't justify exploitation !

That is why there are child labor laws to prevent exploitation !

No difference !

 
at 10:52 AM, May 07, 2008 Anonymous Anonymous said...

Whether or not "payday loans" are a matter of individual choice or an example of predatory lending is completely irrelevant. The practical outcome is what is important, and most people understand that these places add nothing positive to society.

"Payday Loans" are operations that add to blight. They cater to people who have no credit - otherwise their "clients" would be able to meet small shortfalls of $100to $1,000 with a credit card. It is laughable to suggest that the average client is the young, white, well-dressed, middle class couple that the tv ads purport.

In the end, consumers understand that, although no one forces poor people and people with no credit to take out these loans, when an industry needs a bailout or a person gets in too far over their head to be able to pay their bills, it will not be the "payday lenders" who are going to take the hit. The hit will be taken by the taxpayers.

Therefore taxpayers and voters are demanding an end to lenders who make the high-risk, unwieldy loans to people who cannot afford them. Taxpayers are not protected like the "industries" are.

If "payday lending" was such a great thiing, it wouldn't need a rally in which nearly everyone attending is either paid or coerced to be there. And it would not require people in the industry to fill blogs with posts talking about how great they are.

Other peoples' personal freedom is great until I, as a taxpayer, have to start paying for it.

Eliminate the predators.

 
at 11:49 AM, May 07, 2008 Anonymous Justin (Cincinnati0 said...

For those TAXPAYERS who feel that they are paying for us Payday loan lenders giving out loans. . .who do you think is going to be paying us when we have to file for unemployment???? Oh yes. . .that would be you.~~Avoid paying child support??? Payday loans probably help pay it more than help avoid it!!! NEWSFLASH!!! It's the people who are against payday lenders who started the blog. We are a great service and do not need the blog until many people decide to get on here and begin bashing a service that gives people the CHOICE to get the loan or not. Someone said that we are purposely put in poorer neighborhoods because we want to prey on them. Not the case. We are in hard working neighborhoods because we in fact want to HELP them. If your engine went out today. . banks would wait weeks before approving a loan which would take time away from work due to you not having a ride. We aren't interested in your credit score because we feel people are more than a number on a piece of paper. Obviously those who are against care nothing about our families and their well-being, nor about the other people's families whom we assist. Be advised you never know who uses our services. In many cases it could be someone in your own home.

 
at 12:09 PM, May 07, 2008 Anonymous Anonymous said...

Justin,

Thank you for putting the altruism and charity of the payday loan industry to everyone here so eloquently.

Since the industry truly wishes to help us poor folks who are more than just a number on paper, I assume then that your industry is willing to only take what it needs to break even.

Thank you so much!

 
at 12:14 PM, May 07, 2008 Anonymous Kathleen said...

"Payday Loans" are operations that add to blight. They cater to people who have no credit - otherwise their "clients" would be able to meet small shortfalls of $100to $1,000 with a credit card.

We help provide a financial option to those with less than perfect credit who are unable to use the "traditional" banking solutions.

If you don't have a credit card (which sometime charge 30-40% for a cash advance anyway, which is WAY more than our fees!!) where should these people go? Who helps them meet their household bills?

No viable option has been suggested, so if HB 545 passes we'll have over 6000 people out of a job, and millions in Ohio searching for ways to get an additional money. In a recession, this seems pretty Ridiculous.

Should we ban legimate gambling and casinos? Lotteries? Afterall, some might spend their money on these instead of the necessary bills. Or maybe we should also do away with credit cards too? Afterall their rates are incredibly high and they can jack them up even higher b/c of a late payment ($35), pulling your credit score, etc. Talk about loan sharking and usury.

VETO HB 545!!!-- preserve Ohio jobs and our consumers right to financial options!!

 
at 1:57 PM, May 07, 2008 Anonymous Anonymous said...

Yes, people have a choice to go to a PayDay loan place. But the fees are outrageously high. I love the idea of micro-lending. But usury laws are not new, they just fell into disuse or were eliminated under the deregulation fad. The service costs way too much and that is all the legislation is doing, putting a cap on fees and giving people some time to pay the loans back. It doesn't end lending, just predatory lending.

 
at 2:25 PM, May 07, 2008 Anonymous Kathleen said...

" I assume then that your industry is willing to only take what it needs to break even."

I am sure you are requesting that the traditional financial institutions (credit cards, banks), oil companies and retailers, automakers and the like also only "take what it needs to break even."

To even suggest this is LAUGHABLE!!
Last time I looked that was not the way businesses are run in The United States.

An attempt to compare or offer micro-lending as a possible suggestion and answer is not adequate because it's COMPLETELY unregulated.

If HB 545 is passed , ALL OF US IN OHIO will feel the consequences and ramifications!! You are just trying to fool yourself if you think so and clearly don't understand basic Economics 101.

 
at 4:28 PM, May 07, 2008 Blogger Jon said...

Usury laws are an anti-freedom tradition based on religion, not science, and should be abolished just as the tradition of slavery was abolished. There is no legitimate reason why a doctor or lawyer should be allowed to set his own price, but a lender should not. Either we have a system where merchants, service providers and consumers have inalienable rights, where basic freedoms are guaranteed, or we have one where anything can be prohibited for any kind of dubious reason.

Usury originally meant the sin of charging any interest whatsoever on a loan, partly because that was money earned without physical labor. Today, not wanting to give up their bank interest and capital gains, moralists define it as charging "excessive" interest on loans and feel that they are the ones who are qualified to define what is excessive and what isn't.

In fact, the APR of a payday loan tells you nothing about how profitable the loan is for the lender, because it ignores his cost in making the loan, or how wise the transaction is for the consumer, because it ignores his other alternatives. And there is no doubt that for many people payday loans are an extremely valuable option. Researchers from George Mason University and Colby College recently found that “access to payday loans in their environment, all else fixed, increases a borrower’s probability of financial survival by 31%.” See http://news.findlaw.com/prnewswire/20080206/06feb20081017.html

The APR is a statistical tool which only has value for comparing loans which a consumer has access to; if all other factors are the same, his wisest choice is the one with the lowest APR. But most payday loan borrowers do not have access to any other type of credit, so comparing payday loans to personal loans or home loans is completely irrelevant. And prohibiting short-term, small-dollar loans because you translate the fee into an APR which you then claim is "outrageous," based on an irrelevant comparison, is itself an outrageous distortion of reality and restriction of what should be an inalienable right for both lenders and consumers.

There's a place for government regulation in the field of loans, to prohibit deceptive advertising, to ensure that consumers can easily understand the terms of loan offerings, and in the area of debt collection where we have the Fair Debt Collection Act. But the idea that an APR can be designated as a dividing line between acceptable and overpriced loans, of all different types, is just dead wrong, and is based on religious concepts that simply do not accord with the facts. A small-dollar, short-term loan must have a relatively high APR in order to be profitable for the lender, due to the high ratio of the cost of making the loan to the amount being lent.

Of course some people get themselves into trouble with payday loans, but that is true of every good thing. A lot of people eat way too many desserts and give themselves serious health problems. But do we really want to ban ice cream or put a cap on the percentage of sugar it can contain?

Usury laws in fact create loan sharking, where unlicensed lenders use violence to collect on loans. Loan sharking only exists because usury laws prevent reasonably-regulated lending.

Let there be a free market in the field of loans and the dynamics of supply and demand will ensure that consumers have the best options available to them. And if you want to help people who can't resist the temptation to overborrow and who get themselves into a bind with payday loans, then lobby the government to offer them free credit counseling or nonprofit loans, don't trample on what should be the inalienable legal right of businesspeople and consumers to make and choose from among honest offerings.

 
at 5:15 PM, May 07, 2008 Anonymous Finally said...

They are a fungus among us. They are at or below the level of section eight landlords. They are poison to our neighborhoods, and need to be regulated.

 
at 6:07 PM, May 07, 2008 Anonymous Anonymous said...

The payday lending companies are just like used car lots. ONLY AN IDIOT WOULD DO BUSINESS WITH THEM. If you need money and can't get it from a bank or family I would suggest that you either rob a bank or sell drugs. If you get caught, you will still come out ahead and won't get stuck with all those nasty greedy pay day fees and threats. You may have to deal with some idiot peace officers or maybe a rogue prosecutor, but in this town thats run by clowns I don't think you will have quite the problems you would having to deal with the legal thugs at Payday.

 
at 8:11 PM, May 07, 2008 Anonymous Anonymous said...

Hey--there are WAAAY too many FAT PEOPLE, and McDonalds keeps making it WAAAY to easy for these Chubbos to get a double cheese burger for a DOLLAR--No wonder they keep getting fatter! Lets regulate them...BAN THE BURGER--ORRR...regulate it--how about making a cheeseburger $100, of which $99 goes to the state (for health conscious diet plans and education)....You know--FAT PEOPLE are like POOR PEOPLE, they cannot think for themselves and need "Big Brother" to step in....
That sounds about a smart as a bill that puts a YEARLY APR cap of 28% on a 2 WEEK loan. (the truth is, its still ONLY 15% of the principle you borrowed)
And I was thinking...there are too many OLD people out there, using up our social security...HEY OHIO, Can you do something about that too? Dont worry about the $4 a gallon gas, if you think thats not a REAL issue, I BELIEVE YOU.

 
at 8:27 PM, May 07, 2008 Anonymous Anonymous said...

Looks like the democRATS aren't the only ones who use rent-a-mobs.

Hope these 2500 fools got paid.

 
at 9:28 PM, May 07, 2008 Anonymous Kathleen said...

First of all--- the pay day industry in Ohio is government regulated ALREADY (hence the consistency in lending rates) and it is also closely self-regulated. The bill proposal HB 545 further *greatly* restricts the current laws and regulations. Making it impossible for lenders to operate and stay in busines in Ohio.

Secondly, the people that WILLINGLY CHOOSE to frequent Payday loans are ADULTS... with a BRAIN... that SIGN a CONTRACT... that has ALL the TERMS STATED in black and white. No one forces them to use our services, no one demands they use our services--- they weigh their options and make the decision that's best for them.

Third, no one has offered any VIABLE options for those Ohioans that currently utilize pay day advance services if HB 545 passes. This is not the "Sopranos" folks-- we don't break knees or make threats. We lawfully request and encourage that our $$ is repaid in a timely manner. Just as credit cards, mortgage companies and other loan companies request. We don't even charge a late fee like banks or credit card companies do and SURPRISE we don't add interest to the principal either.

All I hear is get rid of the "loan sharks" "scumbags" we are "predators". Guess what? We provide a necessary service to millions of Ohio residents, who is going to meet their needs if this passes? Exactly how are their financial needs going to be expanded and safe? They won't!!!

And to suggest they should "either rob a bank or sell drugs" instead is completely IGNORANT and DISGUSTING. Yeah that sounds like the best alternative or solution for the residents of Ohio!! NOT SO MUCH

If you are truly interested in learning or debating....
Check out www.CFSA.net for more info on best practices, and news on the industry.

Basically EDUCATE yourself before you make blanket assumptions and state "facts".

 
at 8:50 AM, May 08, 2008 Anonymous Anonymous said...

people who cannot get a loan by other means should not be getting credit, period.

 
at 11:11 AM, May 08, 2008 Anonymous Kathleen said...

"people who cannot get a loan by other means should not be getting credit, period."

What an elitist discrimantory remark!!!

I hope that you never lose your job, go thru a divorce, have a medical emergency, your car breaks down-- and your options to borrow money to cover these type of situations is limited.

If you can get credit elsewhere good for you!!

If you can't--- we meet that need. And since you are ignorant, we help MILLIONS of Ohio residents live.

So educate your self a bit and understand the Payday Industry before you make blanket stupid remarks like the one above.

 
at 12:23 PM, May 08, 2008 Anonymous Anonymous said...

I'll bet that those who have defended the pay day loan industry both here on this blog and at the rally are either employed by or related in some way to those who would make their incomes from this industry. They who continue to defend this pratice of loan sharking as capitalism and american business opportunity need to realize that most Americans including myself feel that if a business wants to operate in one of the worlds best markets there is a price you must pay to sell to Americans. In that price you will find ethics and morals that will NOT be compromised. This argument will end when those in power realize that they work for all Americans and not just the wealthy well conected. Or perhaps sooner if Americans change the leadership of our deteriorating country.

 
at 1:06 PM, May 08, 2008 Anonymous Kathleen said...

Please explain to me how "ethics and morals" are being compromised in this instance?

 
at 3:02 PM, May 08, 2008 Anonymous Anonymous said...

keep giving up your rights do do what you want with your life and your money! Welcome to socialist america!

 
at 5:09 PM, May 08, 2008 Anonymous Anonymous said...

What's wrong with socialism?

 
at 5:32 PM, May 08, 2008 Anonymous Anonymous said...

I more for socialism than capitalism.

 
at 11:32 PM, May 08, 2008 Blogger Missy said...

I am an employee of a payday lending company, and to say the least I LOVE MY JOB!!! I get to help people when they are finicaly in a bind. Do you? What is better paying $15 Or $35? Is it that hard? I know payday advances are the best solutions in some cases, because Ive had to use them myself. To say the least Id do it again if I had to. I am a mother of two children, and sometime my paycheck dont go as far as I need it to. I have diapers to buy, bills to pay, and of course GAS. How is someone suspose to pay all this on one paycheck? I guess you have never needed to put money in the bank before they charged you $35 for a gallon of milk. What about the people who use are service and are on SS or retirement? Most of them use it to buy food at the end of the month. Are they suspose to do with out because the government dont pay them enough?? Try not to judge people before you walk a mile in their shoes. Let people make thier own decision. Not have the government tell them what to do with their money. Would you like it if they told you that you cant buy them shoes becauce you already have them in balck? Or you cant buy that new HD TV because you already have a TV? So why let them tell people that they cant use a payday advance if they want to? ITS YOURE MONEY! ITS YOURE CHOICE! NOT THE GOVERNMENT!!!

 
at 8:45 PM, May 09, 2008 Anonymous Anonymous said...

Anonymous "I'll bet that those who have defended the pay day loan industry both here on this blog and at the rally are either employed by or related in some way to those who would make their incomes from this industry. They who continue to defend this pratice of loan sharking as capitalism and american business opportunity need to realize that most Americans including myself feel that if a business wants to operate in one of the worlds best markets there is a price you must pay to sell to Americans. "

__What is America paying you to purchase your gas at $4 bucks a gallon? Whats America paying you to pay your increasingly high energy bill?

As for the people "defending the payday industry must be employed by them or forced to go to the rally"
The people defending them are the EDUCATED people that actually took the time to research current laws that govern the payday industry.
Chapter 1315 of the Ohio Revised Code governs payday lending, take a moment to read it before you make everyone a little dumber from your uneducated comments.

Oh, and answer me this, If your company was attending a rally, and gave you the option to attend...wouldnt you expect to be paid your daily wage?
And if the payday lenders that allowed their employees to attend, made them do so without pay....HMMMM wouldnt that just add fuel to your ignorant fire of uneducated knowledge.
Get a grip, Get a life, and GET TE FACTS

I'll make things REAL easy for you since you're too lazy to do it on your own..
Here is the link to Ohio State Law that governs payday lending.
Enjoy.
http://codes.ohio.gov/orc/1315

 
at 11:11 PM, May 12, 2008 Anonymous becky d. said...

1. payday loans weren't around 20 years ago, and people got by just fine.
2. even though i may have to pay alot for fuel, when i am finished pumping and paying, its OVER, no scrambling for money to pay back in 2 weeks.

 
at 4:30 PM, May 31, 2008 Anonymous Anonymous said...

Everybody that comments on the payday lending I know you all think you are mental giants. The payday lending industry must stay.
Too many people depend on this to get by paycheck to paycheck. First of all the percentage rate is 15% not 391% in order to get an apr of 391% you would have to roll the loan over 26 times which is not permitted in ohio. I really do not understand why this is so hard to understand but some people are just plain stupid! I am a user of the service it has saved me from a meltdown. I work hard but the ecomomy sucks it's hard to make ends meet I really think that Strickland has much more to worry about in Ohio he should open his eyes Marc Dann, enough said. So all of you that are against payday lending I hope one day you are in need of money for a repair or emergency and they say NO Most of you against this must have had a bad experience, not able to manage your finances, in other words you borrowed from a payday lender and didn't pay them back that makes you a loser not for having a hard time making ends meet just for bashing people who provide a service that helps many people

 
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