How will you vote on Issue 5 - REFERENDUM ON LEGISLATION MAKING CHANGES TO CHECK CASHING LENDING, KNOWN AS “PAYDAY LENDING

Tagged:  
No votes yet

ISSUE #5
REFERENDUM
REFERENDUM ON LEGISLATION MAKING CHANGES TO CHECK
CASHING LENDING, SOMETIMES KNOWN AS “PAYDAY LENDING,”
FEES, INTEREST RATES AND PRACTICES
Substitute House Bill 545 (H.B. 545), which was passed by the Ohio legislature and signed into law by the Governor, substantially changed the law regulating how certain lenders in Ohio operate. Under the referendum, voters must decide whether Section 3 of H.B. 545 should go into effect. Section 3 of H.B. 545 deletes the old provisions of the law regulating check cashing lenders, sometimes known as “payday lenders,” in favor of the new provisions.
1. If a majority of Ohio voters approve Section 3 of H.B. 545, all short term lenders, including check cashing lenders, would be subject to the following limitations:
• The maximum loan amount would be $500;
• Borrowers would have at least 30 days to repay the loan; and
• The maximum interest rate would be 28% annual percentage rate (APR) on all loans.
2. If a majority of Ohio voters reject Section 3 of H.B. 545, check cashing lenders would be allowed to continue under previous law as follows:
• The maximum loan amount would continue to be $800;
• There would continue to be no minimum repayment period; and
• Check cashing lenders could continue to charge rates and fees, resulting in a total charge for a loan that substantially exceeds an equivalent APR of 28%.

A “YES” vote means you approve of Section 3 of H.B. 545, and want to limit the interest rate for short term loans to 28% APR and change short term lending laws.

A “NO” vote means you disapprove of Section 3 of H.B. 545 and want to permit check cashing lenders to continue to be able to offer short term loans as currently permitted.
A majority “YES” vote is required for Section 3 of H.B. 545 to be approved.

If man has no tea in him, he is incapable of understanding truth. ~Japanese Proverb

One more area the government shouldn't be intruding into.

Big Jim

Big Jim

Loansharking? Not a place for regulation? Are you kidding me?

Jim's hit the nail on the head!

I think it time we tell the government WE'VE HAD ENOUGH AND WE'RE NOT GOING TO TAKE ANYMORE!

F**KING GOVERNMENT!!!!!!!!!!

rate and 10,000 loan shark jobs will be gone overseas. That's what I heard a guy say on the radio. so I am ambivalent on this issue.

If people are THAT stupid with their paychecks, then there's no legislation that can possibly help them.

In addition, they may be forced into living more frugal lives. You know, that means getting rid of the cigarettes and cellphones and beer and cable TV and DSL Internet and all the other features of excessive living expenses that these "poor" people indulge in FAR TOO MUCH.

"Cry me a river", in other words.

Although I recognize the right of Ohioans to regulate businesses, this is still an issue that regulates itself. The check-cashing type of business not only performs a service that no bank will ever do, but the terms are so bad for the consumer that it should be only natural for said consumer to avoid these deals as much as possible. People who are worth a shit should avoid such places unless some emergency arises where it's a valid option, and then they just pay the premium for the service since all emergency needs are expensive. (People who aren't worth a shit aren't worth our concern in the first place.)

The Blockade newspaper has reported that after peaking around 1600 establishments in Ohio (around 18 per county!), the number has dropped to 1350, and about 1100 total have applied for new licenses (perhaps only under the anticipation of the new law). The industry well seems to be regulating itself. Hence, I can only vote NO on this issue ... even while recognizing that Ohioans do have the right to regulate businesses in this fashion.