I don't know why Mike Huckabee wants you to vote no (other than the obvious), but he just called me and told me so. It is nice that someone from Hope, Arkansas cares so much about what is happening in Ohio. I guess he may be up to another round of presidential politics :)
FYI Mike Huckabee does not want you to support issue 5 (payday lenders)
I don't see why a man of faith like Mike Huckabee would support the predatory and usurious business practices of payday lenders! The bible says usury is the practice of charging exorbitant interest. Apparently 391% APR doesn't qualify? We need to stop predatory lending in Ohio. Vote yes on issue 5! A yes vote will lower interest rates on payday loans from 391% APR to 28% APR and end the debt trap for 300,000 Ohioans!
The "PayDay Lenders" offer a valued service compared to the Credit Card companies and banks.
Late fees applied to Credit Card bills have gone up 150% in some cases and can approach up to 1500% yearly (depending on your card company and balance)
http://money.cnn.com/galleries/2006/moneymag/0612/gallery.outrageous.fee...
And a bank overdraft charge of $15.00 on a check written for $1.00 is 150%. That exact same overdraft charge CAN be presented by the bank up to three times for the same bad check. Total cost of $45.00 for one check written for $1.00 which equates to 4500% interest in just one week.
Don't go after PayDay lenders, go after the people that force the use of PayDay lending. Go after the Credit Card companies and Banks.
And they're not going away entirely when Issue 5 passes. There will just be a lot less of them, which probably should happen because there are more payday lending locations in Ohio than McDonalds, Burger Kings, and Wendys combined.
"Late fees applied to Credit Card bills have gone up 150% in some cases
and can approach up to 1500% yearly (depending on your card company and
balance)"
Credit card interest rates are capped in Ohio at 25% APR and late fees aren't calculated towards that cap. Also, credit cards have a grace period where no interest is charged and it's usually longer than two weeks. I would love to see a credit card that charges 1500% APR on balances. There is no way anyone could pay off their balance with an APR that high.
"And a bank overdraft charge of $15.00 on a check written for $1.00 is 150%."
Bouncing a check in Ohio is a misdemeanor.
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"Show me a man who lives alone and has a perpetually dirty kitchen, and
five times out of nine I'll show you an exceptional man." -Charles
Bukowski
"Bouncing a check in Ohio is a misdemeanor."
I looked it up and that is very true. For a bounced check of less than $150.00 the penalty could be up to 6 months in jail, $1,000 fine, or both.
http://lawvolunteers.com/law/1114/35114-bounced-check.html
So, in order to save you from yourself and these "evil predatory lenders", do-gooders would rather open you up to a 6 month jail term AND a $1000 fine.
Of course bouncing a check is illegal. So is an unregulated, unsecured loan from Fat Tony at the Sicilian Gentlemen's Club, which is the only place an APY of over 50% should be expected.
"So, in order to save you from yourself and these "evil predatory lenders", do-gooders would rather open you up to a 6 month jail term AND a $1000 fine."
Before payday lenders, what did we do if we faced a financial crunch?
But most people won't accept their financial reality and look for an easy way out. Payday lenders let people delay the inevitability of their financial crisis while removing options from the list above as the once-manageable debt grows out of control.
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"Show me a man who lives alone and has a perpetually dirty kitchen, andfive times out of nine I'll show you an exceptional man." -CharlesBukowski
Who cares what Elmer Gantry thinks?
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'I used to have compassion, but they taxed it and legislated it out of existence.'
I agree that We The People have the right to regulate the moneychangers.
Even so, going to a payday loan place is such a bad move that it should in effect regulate itself. It's like telling people we need to regulate a place that offers free food as long as you stand there and get punched in the face for it. "Here's your free meal, sir ... POW!" What sensible person would tolerate getting punched in the face just for some free food?
I signed the petition that put this on the ballot. However, I will be voting NO on it. Usury from places like this is something that should regulate itself. At least this form of usury is above-board; it remains for the customer/victim to recognize what is a fairly simple APR calculation. Those who can't do that are just stupid, and you can't fix stupid.
Don't go after PayDay lenders, go after the people that force the use of PayDay lending. Go after the Credit Card companies and Banks.
One does not preclude the other. The credit card companies, the banks, credit unions and anyone who charges a usury rate on any financial transaction should be regulated by the Federal gov't. Failing that or in addition to the Federal Government, the State should regulate the practice and include a law like Florida does for bounced checks (a bench warrant is issued).
What sensible person would tolerate getting punched in the face just for some free food?
One who is starving and has no other recourse. These places prey on people who are enduring financial hardship. While I'm loathe to regulate business, I'd be willing to support regulation for check cashing and pay day loan stores if banks and credit card companies can be regulated to a stricter set of rules at the same time.
Unfortunately, it's unlikely the payday industry will regulate itself. They're benefitting far too much from other people's desperate situations - over 300,000 Ohioans are already in debt because of payday loans!
Voting no on issue 5 will only keep the debt coming - voting yes on issue 5 means that the people who go to these places actually have a realistic chance at paying off their loans the first time around because the interest rate will be 28% instead of an interest rate somewhere in the hundreds.
I don't know about you, but i think a little less debt in today's economy seems like a pretty good option.
Vote Yes on Issue 5!