Ohio Payday Lenders Caught Lying in Ballot Initiative Signature Drive

by Christopher Peterson

Yesterday Ohio Public Radio ran a story exposing fraudulent ballot initiative practices used by the Ohio payday lending industry in its campaign to remove the state's new usury limit. The story, available here, features audio clips of paid signature gatherers falsely claiming that the proposed measure would lower interest rates, rather than raise them.  The story also reports that payday lending industry representatives have been paying homeless persons cash in exchange for signing the petitions needed to get the initiative on state ballots.

Consumer law and policy blog readers may recall that the Ohio Legislature recently re-imposed a traditional usury limit of 28% per annum on consumer loans made by non-depository lenders.  This traditional usury limit removed a payday lending authorization statute that had previously allowed interest rates of about 390%. Now Ohio payday lenders are putting all their financial muscle behind a last ditch effort to save Ohio's usurious lending industry.

Interestingly, a spokesperson for the industry refused to commit to removing signatures from ballot petitions that were obtained through fraudulent representations about the effect of the initiative.

Comments

[Thomas]

The payday lobby continues to deceive votes with their advertisements as well. They have already spent $382,127 in just 5 days on the 'farmer' ad (an actor - not a real farmer) and have just released a new heart wrenching ad with a mother and her two sons. Of course, neither ad mentions what will happen if the referendum passes: the continuation of usurious 391% interest. They will likely spend another $100,000 per day on the new ad, trying to get people to sign their petitions. We should we trust them? They don't trust voters with the facts on the ground, so why should we trust their ads?

[Thomas]

To end predatory payday lending in Ohio, voters will have to VOTE YES ON ISSUE 5!

Join the campaign to end 391% interest, here:http://www.end391.org/

[Greg]

Ohio voters will have to VOTE YES on ISSUE 5 in order to curb predatory payday lending. The Ohio Secretary of State, Jennifer Brunner bowed to the payday lobby on the ballot language. The ballot language is going to be confusing and includes no reference to the prior allowable interest rates that were as high as 391%! Brunner should fix this problem!

If the language stands, vote yes on issue 5! http://voteyesonissue5.org!

[Bob]

Vote No on Issue 5
Let Ohioans make their own financial decisions and not elected officials. The rate is $15 per $100 for a loan of 2 weeks; the 391% only is if you take the same loan 26 times in a one year period. If you bought $100 of goods from a convenience store they made more than a $15 profit. Should we limit their profit also, isn’t that called Socialism?

[Greg]

Here's a new video with more evidence of the payday lobby deceiving Ohio voters - not unlike what Bob is doing by claiming that the APR on a two week payday loan isn't 391% APR. That's exactly what it is! The Truth in Lending Act requires that payday lenders disclose the APR to borrowers. Voters should be given the same information!

http://www.youtube.com/watch?v=zDoeXujagE4

[No Fax Payday Loans - David]

Payday Loans can be very useful in an emergency. It cares a lot to those who always experienced money shortage when they have financial problem. The best thing about obtaining a cash advance online is that they can help you get out of a temporary financial bind, often on the same day of approval.

Additionally, an increasing number of low fee payday loan lenders are allowing clients to back their online payday loans in installments rather than paying the entire thing on their next payday. This means that you can get a helping hand not only in bridging the gap between paydays, but also in getting on the right foot towards a brighter financial future.

Cash advance companies welcome the opportunity to help out someone, even when they have nowhere else to turn. I have read articles at http://personalmoneystore.com/moneyblog/ about the benefits and features of no fax payday loans online that makes me think that banning of payday lending companies is a big mistake.

[Payday Loan Advocate]

One day in May, I was doing the laundry and the hot water heater broke! I went over my finances and discovered I couldn't afford repairs or a replacement. I had to heat water on the stove for things like showers and dishes, so I decided to call a short term installment loan company.
I got a quick, faxless payday loan so I could fix the water heater with repayment terms that were reasonable. I'm glad I made the call; my payroll advance really helped out.

[Payday Loan Advocate]

One day in May, I was doing the laundry and the hot water heater broke! I went over my finances and discovered I couldn't afford repairs or a replacement. I had to heat water on the stove for things like showers and dishes, so I decided to call a short term installment loan company.
I got a quick, faxless payday loan so I could fix the water heater with repayment terms that were reasonable. I'm glad I made the call; my payroll advance really helped out.

[Payday Loan Advocate]

One day in May, I was doing the laundry and the hot water heater broke! I went over my finances and discovered I couldn't afford repairs or a replacement. I had to heat water on the stove for things like showers and dishes, so I decided to call a short term installment loan company.
I got a quick, faxless payday loan so I could fix the water heater with repayment terms that were reasonable. I'm glad I made the call; my payroll advance really helped out.

[Tommi]

We will give you 30 day payday loan online within 24 hours - up to $1000 will be wired to your bank account the next morning!ﾠThere are no credit checks, long loan application to fill out, or unnecessary paperwork. It’s fast, safe, and convenient.