PayDay Lenders Take Case on Signatures to Court
Joe Mathews -
July 9, 2008 - 8:48am
In Ohio, payday lenders have filed a ballot initiative to loosen regulation of their industry. But they haven't been able to begin gathering signatures because the state's attorney general has yet to sign off on the official langauge of the petition. This is a big problem in Ohio, which has a tight, 90-day window for gathering signatures. In an extraordinary move, the lenders have filed suit to cut the a.g. out of the process, the Columbus Dispatch reports.


















Lawsuit Frivolous
Franklin County Judge Tim Horton did not agree to file a TRO on the Ohio Attorney General and this is not a surprising result. The petition summary language addressing House Bill 545 hasn’t been truthful and includes no reference to the bill's interest rate cap of 28% APR. If the Reject HB 545 Committee’s attorneys chose to include the fundamental tenant of the bill, the Attorney General would most likely approve the language and the signature collection could begin.
Ohio law is pretty clear about the AG’s responsibility to review petition summary language: “Not later than 10 business days after receiving a copy of the petition, measure, and summary, the attorney general shall examine the summary and, if in the attorney general’s opinion, the summary is a fair and truthful statement of the measure to be referred, so certify.” The AG hasn’t found the summary to be fair and truthful. Pretty darn cut and dry! Horton made the right decision. The voters have a right to view a fair and truthful summary before deciding whether or not to sign the Committee’s petition.
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