If you're still confused, or haven't paid attention to the statewide referendum on payday lending, read this:
"Here's the deal: Ohio lawmakers have enacted a law that caps the annual interest rate on payday loans at 28 percent. A "yes" vote on Issue 5 would continue the cap. A "no" vote means lenders could return to the wicked ways of the Check-Cashing Lender Law, which caps annual interest rates and fees at 391 percent."
That's from today's column by Ann Fisher in the Columbus Dispatch at this link.
Wednesday, September 3, 2008
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Thanks Bruce. I signed the petition and was told rates would go down. I think I read somewhere that that's a crime. Do you know if I can file a police report?
ReplyDeleteThanks for posting about payday lending, Bruce. The payday lobby that flew in after the passage of HB 545, has been doing their best to confuse and mislead voters.
ReplyDeleteEnumerable Ohio voters have been told by the payday lobby that the referendum will "lower interest rates" and stop "those loan sharks," when those statements couldn't be farther from the truth.
It's important that Ohioans understand the ramifications of Issue 5. There are too many people hurting in Ohio as a result of predatory payday loans for the payday lobby to get away with their mantra of "freedom" and "choice." 391% interest does not amount to financial freedom!
Vote yes on issue 5 for lower interest rates!
http://www.yesonissue5.com
I don't know about filing a police report, and I doubt it would help if you did. I suggest you direct your energy toward spreading the truth - a letter to the editor, talking it up to friends, for instance.
ReplyDeleteHey "ANONYMOUS"--what's your name? I'm sure they wont find YOUR name on the petitions either. Did you know COHHIO (the coalition of homeless and housing) has spent millions to smear the name of the payday industry, in fact, if you GO TO their website that you published on your comment--you will see THEY have been going around circulating for pledges AGAINST the payday industry--so you probably were deceived by COHHIO posing as Payday lending petitioners. Again--I keep hearing--oh I was deceived--but NO NAMES are showing up from those claims. Thats libel--and That IS a crime. So zip it if you cant back it up.
ReplyDeleteAnd BRAD--how are people getting hurt by having a financial option? Have you stopped to do the math?
(SIGH) here I go again...LET CLASS BEGIN
You pay $15 for $100 = 15% interest.
To get to the misleading 391%APR you have to break the law..
Oh yes class-it gets interesting...
You would have to borrow $100 JUST ONCE ($100)
but pay the $15 fee EVERY TWO WEEKS for a year ($390) 390/100 = 390 %APR
But if you look at a little book called the Ohio Revised Code Section 1315 --OH--what is that? Its a prohibited acts section..Lets flip through that page class--what does it say?
NO ROLLOVERS.
And the ONLY way to reach that APR is to ROLLOVER the loan TWENTY SIX times breaking the law. So--the real interest rate on a YEARLY VIEW is the following
Borrow $100 every 2 weeks for a year (2600)
Pay $15 every two weeks for a year ($390)
390/2600 = 15% APR--DING DING DING What do we have for em Johnny?
Class Dismissed.
A homeless organization with millions! That's positively hilarious! Thanks for that barrel of laughs, Tara. I'll be up late with that one! Payday lending is a multi-billion dollar industry. Helping homeless people is not, last time I checked!
ReplyDeleteWhat the payday lending industry isn't telling anyone is that they don't have to submit any signatures to the Secretary of State if they don't want to! It's awfully convenient that certain petitions haven't been turned in! Obviously the payday lobby simply withheld them because they knew it would incriminate them.
And here we go with more condescension from the industry regarding the APR and the debt trap that thousands upon thousands of Ohioans find themselves in. $15 on $100 on a two week loan annualized is as a matter of fact, 391% APR. It goes with out saying that (unlike what the industry claims), the majority of payday loan borrowers have to keep coming back again and again, whether it be to the same payday lender 24 hours later or another payday lender to pay off the first. However, because of the 24 day cooling off period, the industry likes to throw out the Ohio Revised Code. They just refuse to deal with the truth - they just spin as far as the eye can see!
Vote yes on issue 5 for lower interest rates. Don't fall for their misleading statements. It's time to curb predatory payday lending in Ohio.
Hey B-rad. Glad you could return the laugh. You're right, the COHHIO doesnt have millions because they all spend it on salary, in fact in 2006, Bill faith raked in 8% of the total donations (1.3 million) and less than ONE THIRD was spent on actual HELPING of the homeless--Totaling 526,000 spent total on incomes for the "NON PROFIT" organization. Hey bill faith-less how's that 6 figure income treating you? YOU surely aren't feeling the effects of the poor economy)
ReplyDeleteBrad--Payday Lenders are Not non profit, which is a stark contrast to what COHHIO Accepts donations for --what business doesnt expect profit--wow are you a 30 watt bulb or what?
And B--, you wanna use the APR they assign to pay day loans inaccurately...lets do a little comparison in math
1. $100 payday advance with $15 fee is 391% APR.
2. $100 bounced check with $54.87 NSF/overdraft fee is 1431% APR;
3. $29 overdraft protection fee on 4. $100 is 755% APR.
5. $100 credit card balance with $37 late fee is 965% APR;
Wow Brad--now what do you choose?
So, as for eradicating outrageous traps for the american consumer Brad, it seems you have A LOT of work to do, and when you're finished, American's will have no choices.
VOTE NO ON ISSUE 5--PRESERVE OUR CHOICES OPTIONS and FREEDOM--VOTE NO ON ISSUE 5
Wow. You fail to remember that the $1.3 million is COHHIO's entire operating budget, spent on providing technical service to homelessness and housing organizations throughout the state of Ohio, helping poor who are being evicted from their homes, helping homeowners in foreclosure find rental housing, etc. Sounds like they are doing something a little more admirable than what you do for a living! The payday lobby spent more in 2 WEEKS on television ads than COHHIO does in an entire year. So, who are the big money people in this campaign? The payday lenders.
ReplyDeleteAgain, you aren't going to change my mind about bounced check fees, overdraft fees or credit card fees - all those fees are too high as well! I'd be happy to see some movement from the legislature on those! Perhaps you'll take up the mantle on capping banking and credit card fees?
Brad--what you're doing is ELIMINATING all options for consumers. You have communistic views. You want everyone to pay "fair fees' but not everyone has great credit. you want everyone to be "helped" and equal, but not everyone is, its the beauty of balance. Next you'll want to track and control the amount of fast food your minions eat, the energy they consume, the number of children they have, mandate when who and how they speak--you're really too much.
ReplyDeleteThanks again for the laugh. I'm hoping not too many people listen to you when you advise them on politics. if they do--they have glossy painted on eyes and strings on their limbs, just like REAL people, but not quite until you get your way.
Brad--what you're doing is ELIMINATING all options for consumers. You have communistic views. You want everyone to pay "fair fees' but not everyone has great credit. you want everyone to be "helped" and equal, but not everyone is, its the beauty of balance. Next you'll want to track and control the amount of fast food your minions eat, the energy they consume, the number of children they have, mandate when who and how they speak--you're really too much.
ReplyDeleteThanks again for the laugh. I'm hoping not too many people listen to you when you advise them on politics. if they do--they have glossy painted on eyes and strings on their limbs, just like REAL people, but not quite until you get your way.