Issue 5 Blog
END predatory payday lending in Ohio
Issue 5 Blog is the blog of the IS 391% TOO HIGH? VOTE YES ON 5 COMMITTEE, a statewide group of nonprofit advocates, members of religious and civic organizations, concerned citizens, former payday employees and trapped borrowers who are dedicated to fair and just lending practices in Ohio.
Signed into law in June, HB 545 curbs the industry wide practice of charging Ohio consumers 391% interest on predatory payday loans. HB 545 caps interest rates on payday loans at 28% APR, limits to four the number of loans that can be offered per year, and allows for a longer repayment period.
But the law is under attack by the industry's national lobby group. An estimated $16 million will be spent to overturn HB 545 in the November Elections.
We welcome lenders, consumers and advocates dedicated to fair lending practices to join the dialogue on the END 391% Blog.
Ohioans strongly repudiate predatory payday lending by voting yes on issue 5! - Nov 6, 2008
Ohio's consumers won an overwhelming victory on Tuesday when Issue 5 passed by a significant margin. Over 3 million Ohioans voted YES on Issue 5 to lower interest rates on payday loans from 391% APR to 28% APR. Issue 5 won in 87 out of 88 counties, Adams County in Southeast Ohio being the only county to vote ‘no' on Issue 5 by approximately 339 votes.
Ohioans unquestionably saw through the lies and deceptive advertisement of the payday lenders and their nearly $20 million… read more
VOTE YES ON ISSUE 5 TODAY! - Nov 4, 2008
November 4, 2008
Election Day is here! Vote YES on ISSUE 5 today!
Here are 5 reasons to vote yes on issue 5:
Voting Yes on 5 lowers interest rates on payday loans from 391% to 28% APR.
Voting Yes on 5 ensures that loans will still be available for people who need them, but the interest rate is reduced so that it is comparable to the rates charged by credit cards.
Voting Yes on 5 prevents Ohioans from slipping into a never-ending cycle of debt.
Voting Yes on 5… read more
Michigan Survey Highlights Financial Destruction of Payday Loans, Urges Yes on Ohio Issue 5! - Nov 3, 2008
Today, a study was released by Michigan University Professor Michael Barr highlighting the negative impact that payday lending has on borrowers.
"While the Michigan survey does not establish a causal relationship, it finds that 11 percent of payday borrowers experienced bankruptcies in the preceding year, while only 4 percent of non-borrowers did so. Twelve percent of borrowers faced eviction; that rate was 6 percent for non-borrowers. Over a quarter (26%) of payday borrowers had their… read more
YES ON ISSUE 5 UP BIG IN DISPATCH POLL - Nov 2, 2008
Ohio's Consumers Winning Big
For Immediate… read more
Former Ohio Governors Urge a YES Vote on Issue 5 - Nov 2, 2008
Gilligan, Celeste, Voinovich and Taft come forward to address voter confusion
For Immediate Release: October 30, 2008
(COLUMBUS) - In an effort to eliminate any confusion voters might still have with Issue 5, four former Ohio governors today announced their support for a cap on payday loan interest rates and called for Ohioans to vote "YES" on Issue 5 to keep the rate cap in place.
Citing the need to protect Ohioans from the financial devastation that can result from high-interest… read more
Mansfield-Richfield Chamber Breaks with Ohio Chamber of Commerce on Payday Lending - Oct 29, 2008
Kevin Nestor, the President of the Mansfield-Richland Area Chamber of Commerce wrote a letter to the Mansfield News Journal, breaking with the Ohio Chamber of Commerce on payday lending. Nestor urges a YES vote on Issue 5.
"Issue 5 asks voters whether the provisions of a new Ohio law that place new restrictions on payday lending should go into effect. These would limit the maximum loan amount to $500, give borrowers at least 30 days to make repayment and cap the annual interest rate at 28… read more
Clinton & Schwarzenegger Support Capping Interest Rates on Payday Loans - Oct 28, 2008
Since we're only one week away from the November 4th Election Day, it's time to highlight a Wall Street Journal opinion piece co-written by President Bill Clinton and Governor Arnold Schwarzenegger. The piece ran back in late January and showcases the bipartisan manner in which Ohio's payday lending reform legislation passed and the manner in which it should be supported next Tuesday.
"The American dream is founded on the belief that people who work hard and play by the… read more
Yes on 5 Campaign Taps Creativity, Energy of Young Adults - Oct 27, 2008
For Immediate Release: October 27, 2008
COLUMBUS - In increasing numbers, young voters in Ohio are saying NO to corporate greed and YES to Issue 5, putting talent and energy behind their support.
Efforts by young people include organized activities on 11 Ohio college campuses, student-made videos, and a band of young Facebook subscribers who flock to a repentant loan shark named "Shady," and call themselves "Shady's Ladies."
"Young people are particularly offended by the… read more
All 8 Major Metros Endorse Issue 5! - Oct 27, 2008
It's Unanimous! Columbus Dispatch Endorses YES Vote on Issue 5
Eight Largest Newspapers Call for Keeping Payday Lending Reforms
For Immediate Release: … read more
Payday Lending Lobby Spends Nearly $14 Million in Ohio on Issue 5! - Oct 23, 2008
Campaign finance reports were filed with the Ohio Secretary of State today, suggesting that pro-consumer advocates were vastly outspent by the out-of-state lobby schlepping for the payday lending industry. According to the Secretary of State's office, the Reject House Bill 545 Committee spent $13,800,396.35 in the period leading up to the general election. With almost 2 weeks left, the industry reportedly still has about $1.3 million in cash on hand to spend.
The Is 391% Too High?… read more
Payday Lenders Target Main Street Ohio - Oct 23, 2008
A CBS news article discusses online payday lenders using the financial crisis to their advantage. Apparently, the nation's predatory payday lenders are set to cash in on the misfortunes of Ohioans struggling to make ends meet as the credit market tightens.
"As Wall Street is reeling from years of easy credit it couldn't afford, online payday lenders are targeting Americans on Main Street with easy credit options that can leave consumers swimming in new debt."
An earlier… read more
Payday Lenders Run Ads, Attack Themselves - Oct 22, 2008
In what is clearly a desperation move, the payday lending industry has begun running ads in the state of Arizona attacking none other than...the payday lending industry! The Community Financial Services Association (CFSA) is the likely purchaser of the ads that are attacking their own in Arizona where a similar (but reversed ballot question) initiative is on the ballot. The belief is that because public sentiment is against the payday lenders, that if they lie to voters and suggest that the… read more
Ohio's Payday Lenders Target Seniors - Oct 22, 2008
Now that we're only two weeks away from the November 4th election, it's important that Ohio voters are reminded that payday lenders target the poor and the elderly. The Wall Street Journal ran a great piece in February entitled "Social Insecurity: High-interest lenders tap elderly, disabled."
The first two paragraphs of the article are reminiscent of reports of payday lenders targeting elderly because they know that there is a social security check arriving every… read more
Mayor Jackson & Cleveland Area Officials Endorse Issue 5 - Oct 21, 2008
Cleveland Mayor Frank Jackson, Cleveland City Councilman Joe Cimperman and Parma Heights Mayor Martin Zanotti joined Policy Matters at Cleveland City Hall to voice their support for passage of Ohio Issue 5. The report entitled "Wise Counsel: Credit Counselors Cite Perils of Payday Lending," suggests that credit counselors would never recommend payday loans to their clients.
You can watch video from the Press Conference here: http://www.youtube.com/watch?v=pwLIC_4CcLc
The… read more
Issue 5 Collects More Newspaper Endorsements - Oct 21, 2008
COLUMBUS -- Newspapers and consumer groups from around Ohio continue to line up in support of a ballot issue to preserve Ohio's payday lending reform law and cap the annual interest on payday loans.
A majority YES vote on Issue 5 would limit the interest on payday loans to 28 percent annually. A majority NO vote on Issue 5 would allow payday lenders to continue charging 391 percent APR.
"Newspapers of all political persuasions agree that a YES vote… read more
Yes on 5 Committee Airs Truthful Ad - Oct 15, 2008
During the course of this campaign season, Ohio newspapers have collaborated to rate the advertisements of the state's issue campaigns. The payday lobby, Ohioans for Financial Freedom, has averaged a score of 2 out of 10 (1 being not accurate or truthful and 10 being accurate and truthful) on their TV ads so far. The Vote Yes on 5 Committee, on the other hand, received a 9 out of 10 on the truthfulness scale from the Cleveland Plain Dealer this week.
View the ad here:… read more
Credit Counselors Critical of Payday Lending - Oct 14, 2008
A new Policy Matters Ohio report details survey results from credit counselors who were asked questions about payday lending. Policy Matters surveyed 17 counselors from 28 Ohio counties and results were consistent.
"Counselors were particularly alarmed at the high interest rates of loans and the number of clients who had several outstanding loans at once. On average, counselors said that their clients had outstanding payday loan debts of $1,000, and that their clients, on average owed… read more
60% of Central Ohio Executives to Vote Yes on Issue 5 - Oct 13, 2008
According to a Columbus Business First survey of Central Ohio business executives, "more than 60 percent said they oppose the payday lenders' Issue 5 bid to repeal a portion of a new state law that caps payday loans at 28 percent annual interest." Central Ohio's executives are not buying the "jobs" argument from the payday lending industry and realize that their businesses are hurt when consumers lose purchasing power through the payday lending debt trap!
Comments by Catherine… read more
Former AG's and Current AG Candidates Urge Yes Vote on Issue 5 - Oct 8, 2008
Columbus - Ohio's major party candidates for attorney general joined with three former attorneys general on Wednesday to condemn the payday lenders' latest deceptive advertising and urge Ohioans to lower the interest on payday loans by voting YES on Issue 5.
Republican Attorney General candidate Mike Crites and Democratic rival Richard Cordray said preservation of the reform law is one of the few issues that unites them - and is an issue that should unite the electorate.… read more
Columnist Writes about Payday Lenders' Deceptive Campaign - Oct 6, 2008
On Sunday, Plain Dealer columnist Thomas Suddes wrote a blistering piece about the payday lenders campaign entitled "Ohio's payday lenders hope dimwits turn out on Election Day." Suddes points out that the payday lenders are trying to overturn one of our nation's best consumer protection bills and head down the 391% interest rate highway by misleading Ohio voters.
Suddes: The lenders, when they could charge 391 percent APRs, had been pleased as punch and obscenely… read more
Register & Vote Yes on Issue 5 During the Golden Week of Voting - Sep 29, 2008
Watch this short message from the Is 391% too high? Vote Yes on 5 Committee: http://cdn2.goldmail.com/BP/1387A0B122/?GMID=rgcja73d6i9f.
Ah…the Golden Week of Voting!
That's when you can register to vote AND vote at the same time.
Avoid long lines at the polls on November 4. . . Take your time with important ballot issues that will affect your family. . .
There is a special opportunity to do this during the so-called golden week between Tuesday, September 30 and Monday,… read more
Shady Shark's First Interview - Sep 29, 2008
Repentant Loan Shark Makes Appearance
A recovering payday lending loan shark, Shady Shark, made another appearance at an industry press conference last week. Shady Shark, who has long made his living as a payday lender trapping Ohioans in debt, has had a change of heart recently after hearing the stories of Ohio borrowers. According to an interview in the Columbus Dispatch, Shady gave up his career in loan sharking: "I decided to get clean when I heard the concerns of people who were… read more
Election Fraud Appears Rampant Among Ohio Payday Lending Petitions - Sep 19, 2008
Potential election fraud appears rampant in the case of those petitions submitted to the Secretary of State by Ohioans for Financial Freedom. Montgomery, Hardin and Allen County Boards of Elections are investigating potential election fraud on the payday lending referendum petitions. According to Allen County elections director, Keith Cunningham, the payday referendum petitions are among the worst he's ever seen.
"The petitions that were submitted on behalf of the payday lending… read more
What debt trap? - Sep 18, 2008
Ever notice how often payday lenders and their supporters engage in subterfuge around the topic of the debt trap. Again and again, the payday industry argues that payday lending is merely as it is advertised: a one-time fix to a short-term problem. There are a myriad of reports that suggest this is untrue.
Payday lenders also like to talk out of either side of their mouths, as evidenced by comments made by Dan Feehan, the CEO of Cash America. "The theory in the (payday) business is… read more
Payday Petition Circulators Improperly Trained; Instructed To Tell Voters Interest Rates Would Drop - Sep 18, 2008
read more
Payday lenders may come up short despite signing up deceased voters - Sep 17, 2008
Initial reports from Ohio's Boards of Elections suggest that the payday lenders may come up a little short in their first attempt to qualify Issue 5 for the November ballot. The payday lenders need 241,365 valid signatures. They turned in approximately 422,000 signatures on August 31st, but validity rates across the state are hovering around or below the rate that would be required to reach the 241,365 signatures.
The payday lenders appear unwilling to play by the rules, as a Plain… read more
Is Ohio up next? - Sep 16, 2008
The payday lenders' spending has surged past the $10 million mark in the Arizona Campaign. The payday lending industry has spent almost $11.6 million in their campaign to make 400% APR permanent in the state of Arizona.
From the East Valley Tribune:
Payday lenders funneled another nearly $2.4 million into their campaign Monday in an effort to persuade voters to let them stay in business.
The new cash infusion brings total donations so far to nearly $11.6 million, all of that from the… read more
Payday Lending & Ohio Astroturf - Sep 10, 2008
Think payday lending and Astroturf don't have anything in common? Think again!
According to SourceWatch.org, Astroturf "refers to apparently grassroots-based citizen groups or coalitions that are primarily conceived, created and/or funded by corporations, industry trade associations, political interests or public relations firms."
The payday lobby has installed their Astroturf in both Ohio and Arizona, two states where consumer protections are under siege by an industry trying to… read more
All Trap, No Freedom - Sep 8, 2008
In Sunday's New York Times, reporter Bob Driehaus writes about Ohio and Arizona, two states in the middle of major campaigns to uphold interest rate caps passed by their respective state legislatures.
"Ohio lawmakers sought last spring to aid borrowers like Ms. Minda by capping annual interest rates for payday lenders at 28 percent, a sharp reduction from 391 percent. But lenders are fighting back in a novel way, collecting enough signatures, once certified, to force a vote in November… read more
Payday lenders tout endorsement of...one of their own? - Aug 27, 2008
Ohioans for Financial Freedom, the payday lobby wreaking havoc on Ohio's electoral process, is touting the endorsement of someone close to their heart. The Ohio Grocers Association endorsed the efforts of the payday lobby to keep 391% interest rates this week.
Interestingly, Ohio Grocers Association President and CEO Tom Jackson is the father-in-law of none other than Check N Go's John Rabenold! Rabenold, a lobbyist for Check N Go ran for the Ohio state legislature, raised… read more
I want my name back! - Aug 25, 2008
Today, Ohio consumers called for an investigation into deceptive tactics exhibited by payday lending circulators. This is a very important development because accurate and truthful information is essential for voters seeking to make an educated decision in November. The payday lenders need to clean up their act ASAP - the integrity of our electoral process is dependent upon it. If the payday lenders are successful at duping voters into signing their petitions and voting 'no' on the… read more
Money Magazine Says Payday Loan Worst Way to Get Cash - Aug 21, 2008
The September issue of Money Magazine has a piece on the "Best (and worst) ways to raise
fast cash." The authors, Stephen Gandel and Conna Rosato offer 16 "best" ways
and one "worst" way. Can you guess what the worst way to raise fast cash was?
Getting a payday loan!
Here are the pros and cons listed by Money Magazine:
Pros: None
Cons: Annualized interest ranges from 200% to 500%. Are you
out of your mind?
To see for yourself, click here:… read more
Payday Lobby's Sham Continues - Aug 16, 2008
The payday lobby, a.k.a. Ohioans for Financial Freedom, has
released a new ad with a woman and her two sons, claiming she really needs her
391% payday loan if one of her sons gets sick. Ohio's largest newspapers give
this ad a '2' on the truthfulness scale. You can read their review of the
commercial here: http://blog.cleveland.com/openers/2008/08/ohioans_for_financial_freedom.html.
With a '2' from Ohio's newspapers, the ad probably gets a 10
on Stephen… read more
Petition Circulators Peddling Lies - Aug 13, 2008
Ohio Public Radio reporter Bill Cohen found two more petition circulators peddling lies outside the Ohio Statehouse. You can listen to his report "Payday Loan Petitions Doubted" and his interviews with petitioners on the WCPN website: http://www.wcpn.org/index.php/WCPN/news/13623/.
From WCPN.org: Ohio's payday loan stores are working to overturn a new law that limits the interest rate they can charge for short-term loans. Storeowners are paying for a petition drive. They want to collect… read more
Payday Lobby Deceives Voters - Aug 12, 2008
The national payday-lending lobby has hit the streets and the airwaves hoping to trick Ohio voters into overturning House Bill 545, a fair and reasonable law that reduces payday lending annual interest rates from 391 to 28 percent. The payday lobby has already spent nearly $1 million collecting signatures to get the issue placed on the November ballot, and will spend an estimated $16 million convincing voters to overturn the law.
The referendum process is meant to give citizens an opportunity… read more
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