Read CFSA’s full statement.

“Credit unions are not going to be the solution for everybody in Ohio,” Hart said. “We’re not trying to be payday lenders, but we do know it’s possible to offer small, short-term loans.” 

Payday industry no laughing matter 

Re “Latest payday lending TV commercial has Ohio farmers riled up,” Aug. 12: I’m glad columnist Mary McCarty found it funny to mock the use of a farmer in a payday industry commercial, because I certainly didn’t. As a two-year employee of a payday lending company, I think the situation of Ohio’s payday industry is no laughing matter.

McCarty claims that the chances of House Bill 545 putting most payday stores out of business are quite slim, but this is exactly what has occurred in other states that have enacted similar legislation. When Oregon banned payday lending in 2007, the number of stores statewide dropped from more than 300 to 80.

In addition, I doubt McCarty’s claim that farmers don’t often use the services of payday stores. Our customers come from all walks of life, and with 74,000 farming families in the state, you can bet that many have used our services.

— Andrea Lank

Dayton

It’s not shocking that the Ohio Chamber of Commerce has lined up with the payday lending industry. The chamber is reflexive in its support of anything that is “pro-business” no matter how extreme or loosely defined “pro-business” is.

Recently, the chamber came out in support of repealing a new law that will limit the interest charges that payday businesses can charge.

“The Ohio Chamber champions free enterprise and economic competitiveness, and we believe HB 545 … runs counter to our mission,” the chamber president said. “This new law, if not reined in by Ohio voters, will drive an entire industry and 6,000 good-paying jobs out of our state.”

The pitch is shameless…

More yada, yada, yada if you have the stomach to read the whole thing.

Which is bigger drain on economy?
In an Aug. 3 Dayton Daily News article, Sandy Theis claimed that the effort to urge voters to repeal part of Ohio’s new restrictions on the payday industry is “a drain on the economy.” That’s a classic example of the pot calling the kettle black.

On one hand, you have the payday industry, which has stores in almost every city, employs thousands of workers and provides short-term financial assistance for Ohioans in need.

On the other hand, you have supporters of H.B. 545, which shuts down the payday industry and puts the jobs of myself and more than 6,000 people at risk.
Now you tell me: Which is the greatest drain on the economy?

Jessica Tipton, Dayton

Monday, August 25, 2008

Paragraph 8 of the Aug. 19 editorial about payday lenders states a $300 loan for two weeks at 28 percent APR is $18 profit for the payday lenders. Actually $18 extra to the lender would be 156 percent interest while 28 percent APR would leave the lender with a mere $3.23 fee for the two-week loan. I wouldn’t loan my money to a stranger for that amount and neither would any other lender. Further, these borrowers can’t get a loan from a bank or credit union and don’t qualify for a credit card and seldom qualify for a checking account. While the fees are outrageous to most of us, it seems a fair charge to the less than credit worthy among us.