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Way to Go Ohio!
One unfortunate growth industry in recent years has been the rise of alternative financial institutions. These are the payday lenders, auto title companies, and check cashers who offer access to cash to virtually anyone that walks through their doors but on horrific terms. I mean really bad.
Payday lenders often charge about $15 for every $100 borrowed on a two-week loan. This would be equivalent to an annual interest rate is approaches 400%. It is an outlandish deal that many people take because they feel like they dont have other options. The problem is that many people in America don't have basic bank accounts, so they conduct their everyday financial transactions with these stores just move their money around. Our colleagues at the Center for Responsible Lending have been committed to ending these abusive practices and are working with people all across the country to change the state laws that govern these transactions. The need for the service is real but the terms are criminal. There ought to be a law...
But the great news out of Ohio is pretty soon it looks like there will be! Just this week, a bill cleared both houses of the state legislature which will put a 28% cap on payday loans. This cap is effectively a ban because it blows up the business model of these firms. Governor Strickland is expected to sign the bill and Cash America has already announced plans to close its 139 stores. Way to go Ohio!
I Second That!
I for one could not be happier that this facade of a business is going away. I do feel bad for the job loss. However, when I quit my position as a Manager at one of these, I found another job. I actually love what I am doing now. The icing on the cake is that I am no longer trapping people in debt. I wrote about my experience with them almost a year ago. This is great news for the people of Ohio!
http://www.associatedcontent.com/article/272458/the_payday_loan_industry...
GIVE ME A BREAK
Are you serious. Taking away a main stream for customers and employees well being is a great thing.
How is your industry financed?
How much does everyone at this organization make. If it is more than minimum wage it is too much.
What are you going to tell my customers and employees that are crying about loosing financial solutions and the other products we offer.
GIVE ME A BREAK!
Mike Steele
Thank You, Governor Strickland!
They will go back to doing whatever they did before these scum sucking leaches came to Ohio. The other states that have run them out of town did not shrivel and die. Neither will Ohio.
Thank the Ohio General Assembly
We should be thanking the Ohio General Assembly for coming together in bipartisan fashion to pass one of the best consumer protection bills in the country! House Bill 545 prohibits payday lenders from charging more than 28% APR, ending the practice of charging nearly 400% interest! This will no doubt end the debt trap for hundreds of thousands of hard working Ohioans and encourage other small loan lenders to enter the market to help provide a product that helps low-income citizens build wealth instead of taking it away.
The national payday lending lobby is hard at work spending millions of dollars to overturn the law. The lobby has already hired the Ohio Petition Company to help collect signatures for a potential referendum on the November 2008 ballot. Pass the word that this is not payday lending reform, but in fact a sly way of allowing payday lenders to continue business as usual in the state of Ohio.
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