NEW INFO: Ohio Pay Day Lending Bill

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NEW INFO: Ohio Pay Day Lending Bill

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Posted: 10:17 AM May 15, 2008
Last Updated: 8:44 PM May 15, 2008
Reporter: WSAZ News Staff: Randy Yohe
Email Address: news@wsaz.com: randy.yohe@wsaz.com

24 comments

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COLUMBUS, Ohio (AP) - Cash America International says it will close up to 139 stores in Ohio.

The announcement Thursday comes one day after the state Senate approved a bill that would ban two-week loans that support the payday lending industry. The Texas-based lender says it will stop operating in Ohio before the bill takes effect this summer.

The company didn't say how many employees it has in Ohio. In total, the payday loan business says it has 6,000 jobs in the state.

The Ohio House must approve the bill. House Speaker John Husted says he expects it to be an easy step. Gov. Ted Strickland says he supports the measure.

The bill reduces the annualized interest rates on short-term loans to 28 percent, down from the current 391 percent.
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COLUMBUS, Ohio (AP) - The Ohio Senate has passed legislation that would create one of the nation's strictest laws governing payday lending.

The bill limits borrowers to four short-term loans a year and caps annual interest rates at 28 percent.

Payday lenders generally charge about $15 for every $100 borrowed on a two-week loan, which would be the equivalent of a 391 percent annual interest rate.

Republican Senate President Bill Harris says consumers also wouldn't be able to borrow more than $500 per loan, or 25 percent of a consumer's base monthly pay - whichever is less.

Industry representatives say the legislation would put payday lenders out of business.

House lawmakers overwhelmingly approved the restrictions late last month.

The House must now approve changes made by the Senate before sending the bill to the governor for enactment.

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Posted by: Anonymous on May 26, 2008 at 06:23 PM
I work at one of these places. It is sad watching people come in to borrow especially people that has a set income every month. I do agree that the fees are way to high but if we regulate them where payday advances can still stay open for example only allow them to borrow up to 400-500 max and yes do lower the fees probably to about 8-10 per 100.00 rather than 15 per 100. I don't feel this way just because i think they will shut down and that my job is in jeopardy i feel this way because the fees are yes too high but 28% interest rate is like a dollar for every 100 i mean that would be nice if they put that percentage rate everywhere. I feel that what the banks are charging to do these advances is a suitable amount for how much payday companies should use. But whatever Gov. Strickland decides to do then i feel thats the best thing for everybody.

Posted by: Millicent on May 23, 2008 at 01:26 PM
If the Governor of Ohio stops pay day loans, is he also going to stop gambling in Ohio which is ruining more lives than pay day loans. Pay day loans help people with bills, grocery shopping, car repairs, medical expenses, etc. What does gambling do for the family? If stopping pay day loans is in the best interest of the public, then I would hope the next step is to do the same to gambling both at public places and on line. To stop the one and not the other is pure hypocracy on the part of Ohio's government.

Posted by: Anonymous on May 19, 2008 at 03:24 PM
IT'S NOT THE $15 FEE THAT PEOPLE HAVE TROUBLE PAYING BACK, IT'S THE $100 THAT THEY BORROWED THAT IS CAUSING THE PROBLEM. THE ANSWER IS NOT TO STOP LOANING ALL TOGETHER, MAYBE JUST TIGHTEN THE LOAN CRITERIA, OR MAKE SURE THE CUSTOMERS DONT BORROW SO MUCH THAT THEY CANT PAY IT BACK. ANSWER ME THIS: WHY DOES SUCH A SMALL TOWN, LIKE BUCYRUS, HAVE 5 CASH ADVANCE PLACES??? WHERE WAS THE GOVERNMENT THEN...STOP AND THINK, THE SAME PEOPLE WHO SET OUR FEES AND RATES, ARE NOW TRYING TO CHANGE THEIR MINDS AND TAKE IT ALL AWAY. WHATS NEXT!

Posted by: Kerry on May 18, 2008 at 08:29 PM
To those upset: You are also upset about how the gov't needs to do something about the high cost of gas, medical bills, foreclossure rates in America. Guess what? The State of Ohio is taking a small step in doing this! Get on a budget. Use cash. Get out of debt & you will have peace and you will find you have so much more money to spend. Thousands of people are doing it every year. They are performing plasectomies on their credit cards. They are getting out of debt. IT CAN BE DONE!! Follow these BABY Steps: 1. $1000 cash in the bank. 2. Debt Snowball 3. 3-6 months cash in savings 4. Fund retirement 5. Fund College. 6. Pay off home early 7. Build wealth and Give. Take a Financial Peace class. We are doing it and have paid off our car a year early and will pay off our van 2 years early. Check out DaveRamsey.com. You will learn you don't need to rely on these places. There is HOPE! We were desperate, but now 2 months 'til "WE'RE DEBT FREE!" using cash and not credit!

Posted by: Anonymous on May 17, 2008 at 08:21 PM
I work full time with decent pay and if it wasn't for these payday lenders, then I would not be able to have money to make all my payments such as a mortgage, utilities, food, and gas. I would much rather be in debt for 2 weeks and pay about $ 75 back in fees than thousands in personal loans just to make ends meet. I've been down that road. It's much easier to fall behind with credit cards and high personal loans. As a single mother, places such as these are a blessing at times.

Posted by: Jennifer on May 16, 2008 at 10:10 PM
Janice.. I am sure that you are only supporting this issue so strongly because you are the District Manager of the Cash Express stores and get a fat bonus from ripping people off

Posted by: Thank God on May 16, 2008 at 06:06 PM
Its about time they regulate these outfits its a never ending cycle once you get started most people i know refer to them as the devil and that is sad they never get ahead and they will never be able to quit going there unless they are limited and the interest rate is just plain criminal

Posted by: denise on May 16, 2008 at 10:15 AM
and you know for people thinkin its a good idea tht the government should DECIDE for you where to loan your money is sad for the people agreeing...wht else would you like for the government to MAKE A DECISION for you???

Posted by: denise again on May 16, 2008 at 09:57 AM
it is a flat fee of 15 dollars per hundred and the apr of 391% to 28% ok well thts from 15 to 3 dollars WOW wht a break get your facts straight before commenting please! and these people are adults and are supposed to use these places "RESPONSIBLY" well if they dont than tht is their fault they are adults...we are not a bunch of mean people..we are alot of single women workin trying to support our families MUCH like our customers!!! how many of you can make it on 600 or less a month? maybe without electric, food, or now thanks to the government again gas! it is NO different than a credit card where u cn use it and be charged for tht 100 or so and not get it paid off on your account for quite awhile!

Posted by: penny on May 16, 2008 at 09:00 AM
For the public to know Cash Express will get very nasty if you dont pay. The threats are unreal that come from them!!! Same for First American!! They make loan sharks look sweet!! They wont even let you make payment arrangements its pay in full or else...they garnish you take you to court... YOU GO TED STRICKLAND!!! I sure hope someone in Kentucky sees this soon!!!!

Posted by: Trayne on May 15, 2008 at 11:54 PM
EVERYONE NEEDS TO THINK BEFORE THEY LET THE GOVERNOR SIGN THE BILL ON PAYDAY LENDERS.I agree with Janice. If you want to borrow that should be your choice. IF you don't then don't . There are many times that a Payday Lender is the stop gap that a person must have to get along. for medicine, gas , car repair. I don't understand the government's feeling that they must interfere. If I want to borrow money and pay that cost then That IS MY BUSINESS not the government. Who in the GOVERNOR's OFFICE will help me through to the next payday when an unexpected expense comes up... Governor Stickland... come live in the shoes of your poor constituents.

Posted by: Janice on May 15, 2008 at 11:19 PM
EVERYONE NEEDS TO THINK BEFORE THEY LET THE GOVERNOR SIGN THE BILL ON PAYDAY LENDERS. IF YOUR KIDS ARE SICK AND YOU ARE IN BETWEEN PAYDAYS WHERE ARE YOU GOING TO GET THE MONEY FOR THERE DOCTOR VISIT OR THERE MEDICATION? SHOULD THE GOVERNMENT BE ABLE TO TELL YOU HOW MANY TIMES YOU CAN GO ON VACATION OR TAKE YOUR KIDS SOMEWHERE. DO YOU THINK THE GOVERNMENT IS GOING TO KEEP YOU FROM LOSING YOUR HOME IF YOU FALL BEHIND, FIX YOUR CAR FOR YOU TO GO TO WORK, PAY YOUR ELECTRIC BILL IF YOU FORGET TO BUDGET FOR IT, PAY THOSE OVERDRAFT FEES AT YOUR BANK THAT WILL EAT UP YOUR NEXT CHECK BEFORE YOU GET IT BECAUSE YOU MADE A SMALL MISTAKE IN YOUR CHECK BOOK, DO YOU THINK THEY ARE GOING TO TELL THE BANK THEY CANT CHARGE YOU THOSE FEES, OR THE CREDIT CARD COMPANY THEY CANT CHARGE YOU THAT MUCH.. ASK YOURSELF IF YOU ONLY OWED $100.00 ON YOUR CREDIT CARD AND PAID ONLY THE AMOUNT THEY BILLED YOU EACH MONTH AND WAS LATE SOMETIMES WHICH COST $39 EACH TIME HOW MUCH DID YOU PAY FOR THAT $100.

Posted by: pd on May 15, 2008 at 10:29 PM
I am sick to death of the government putting their noses in our business. If I want to pay the loans costs, it's none of their business. Putting people out of a job is no laughing matter either. We all lose on this one.

Posted by: chloe on May 15, 2008 at 10:15 PM
I am one of the borrowers and i am glad to see this coming to a end. I have to juggle all of my bills because there is not enough money after I pay these people what i owe them. I am proud of Mr. Strickland and i hope he will make them pay us some of our money back that we paid in interest. and what we owe i hope he makes them let us pay it back in small payments. So mr strickland keep up the good work and hats off to you. thank you

Posted by: Jennifer on May 15, 2008 at 08:56 PM
I think this is one of the smartest moves ever and I hope KY follows right in Ohio's footsteps. These places are keeping people living on a fixed income ina trap until the only out they have is to file bankruptcy or quit paying and let the companies managers, district managers and other employees beat your doors down. I know plenty of Cash Express establishments that are over qualifying customers, most of which are in Grayson, Ashland and Morehead KY, but that is beside the point. These places are being investigated and watched and I hope that each and every one of them are shut down. Although, I do feel sorry for the innocent people that will lose their jobs, but there are other ways out there to make a living where you are not ripping off the unexpecting public!

Posted by: Anonymous on May 15, 2008 at 05:00 PM
Good..its about time something is done about the loan sharks.they take advantage of desperate people.

Posted by: Gene on May 15, 2008 at 03:44 PM
391%!!! What took so long? The predators finally get spanked and they don't like it so they turn tail and run. I say GOOD RIDDANCE to these parasites. While you're at it how about doing something with the insurance companies that are scamming people by baseing their premium on their credit score. This is another type of legalized thievery that needs to be dealt with.

Posted by: cash express on May 15, 2008 at 02:55 PM
we base our loans on the persons pay if they make only 2-300 a month we dont let them borrow 800.00 get a grip!

Posted by: anon on May 15, 2008 at 02:53 PM
i think is sad both ways for the people losing their jobs and for the people tht need the places for help thanks to the government and the new gas prices keep up the good work governor ted strickland!

Posted by: Denise on May 15, 2008 at 02:35 PM
I work at one of the cash lending places and yes the apr is 391 if u do it everyday for a year! It is a flat fee of 15 for a 100.00. These people are adults last time I checked. We are not high-fiving people as they leaving like we are a bunch of loan-sharks? We are helping alot of people (85% of our customers are from West Virginia) NEED these places for BILLS, FOOD, and thanks again to the government GAS! It is a choice no one forces people to come in our establishments! except for our poor economy! and there are many people employees that are single mothers tht support their family and now maybe they can get on WELFARE like the rest of the state! Using the payday places is no different than using a credit card with high rates? or wht does the bank do to you if you are a penny over on your over draft? Its a job in this area which are few and far between! Again its a choice we as ADULTS make choices everyday whether they are right or wrong is it still not are decision?nt the gov?

Posted by: janice on May 15, 2008 at 12:18 PM
is should be my decision not the governements where i want to borrow the money i need in a pinch. if my kids get sick or my car tears up the bank isnt going to loan me the amount i need they want talk to me unless i want to do large amounts of money. if i choose to go to a payday lender i know it will be paid off on my payday not years down the road. all of are not fortunate like the politicians to have a lot of money and not need money in between paydays. my question is when did the united states become a dictatorship? it should be up to me where i borrow my money i need not theres.. there is every walk of like people who use payday lenders. also look at the jobs they will be losing in ohio. i thought that the united states had already lost more than enough jobs. we should be able to choose where we live, work, spend our money and borrow our money from.

Posted by: jeannie on May 15, 2008 at 12:09 PM
I think this is great news!! Kentucky should follow in the footsteps of Ohio. These places are horrible and take money from people that are already having enough hardship. It is their fault that they go to these places but these places dont need to charge the fees they charge. Kentucky is worse than Ohio by far. Hopefully some investigating will help this state as well.

Posted by: Miranda on May 15, 2008 at 11:07 AM
Good job to the state of Ohio!!! You have no only taken away some of your residents only choice for immediate cash needs but you have also taken away 6000 well paying jobs with benefits!!! All in the name of consumer protection. I will believe this when you protect consumers from the banks that charge you $36 for a $1 mistake in your checkbook, and then take on $7 per day in continous overdraft fees if you don't have the balance paid in 3 days! The state also need to have a talk with credit cards who charge you a $39 late fee if you pay your bill 1 day late. That's predatory folks, Capital One needs to lower their fee to no more than $1 for late fees and you can only use your credit card 4 times per year. That state assumes it's residents need babysitters and that they can't handle their personal private finanical matters!! Let the state do it for you! Thanks again to Ohio 6000 on the unemployment line and signing up for medical cards!!

Posted by: Congrats! on May 15, 2008 at 10:50 AM
I am glad to see this pass. This type of stuff is predatory lending. People cry for gov't to help with personal debt and now they have. IF you notice, rich people don't use this because they know that is not how to get rich. Use a cash system (cash/check/debit card) and quit buying STUFF you don't need. Sell things. Live below your means instead of trying to live above. Consumer debt is what is causing this economic "crisis" and I am glad to see gov't responding in a positive way. These lenders are just legalized loan sharks and need to be stopped.

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