I wish these so-called consumer groups (and the government) would keep their noses out of the lending business. What ever happened to the free market.

The Consumer Federation of America (CFA) and the National Consumer Law Center (NCLC), two out-of-touch “consumer” groups which feel they have the authority to grade state lending laws, were given an “F” today by the Community Financial Services Association of America (CFSA) for deceiving media with a phony scorecard of state laws.

“These so-called ‘consumer’ groups have neither the knowledge nor authority to judge states’ regulation of lending practices,” said Tommy Moore, CFSA Executive Vice President. “Grading states based on an arbitrary interest rate cap may be a simple way to generate media attention, but it’s a terrible way to protect consumers and regulate lending practices.”

Payday Lending Reform

The national payday lobby was granted the go-ahead by Ohio’s
Attorney General to start circulating petitions in support of a
referendum to rescind the reform law recently passed by the
Ohio Legislature (HB 545). In the teachings of our faith we have
many warnings about usury and exploitation of people. HB 545
established needed reform. The Diocesan Social Action Office
is discouraging parishioners from signing the petitions
circulated by the industry. The reform of payday lending was a
hard fought struggle that resulted in one ofthe strongest bills in
the nation. Advise your family and friends that HB 545
provided the necessary reform, as well as safeguards, for those
needing short term, en1ergency loans.

400,000+ citizens of Ohio decided to think for themselves and sign the petitions.

Although it is a loss for payday lenders, the decision does not affect their current referendum effort. On Sunday, the lenders’ coalition turned in 422,000 signatures, and county boards of elections will determine whether the group has the 241,366 valid signatures needed to qualify for the ballot.

A payday-lending coalition sued in July, as it started an effort to overturn new regulations on the industry. Attorney General Nancy H. Rogers rejected an initial petition summary submitted by the group, calling it vague and inaccurate, forcing lenders to submit new language and delaying their signature collection.

The group, Ohioans for Financial Freedom, argued that the state law giving Rogers 10 business days to review the summary let her eat up about 15 percent of the 90-day window that the committee had to collect its signatures. The lawsuit argued that impeded the constitutional right of referendum.

The appeals court disagreed, upholding a lower court decision.

“The fact that the 10-business-day provision might work to restrict, rather than facilitate the referendum process under some plausible set of circumstances is insufficient” to overturn the law, said Judge Judith L. French, writing for the 2-1 majority.

Thursday, September 4, 2008

Ohioans For Financial Freedom

Want Voice Heard On Constitutional Challenge

Columbus― Ohioans For Financial Freedom said today they will continue to work to ensure Ohioans can exercise their Constitutional right to repeal a bad law, and anticipate they will take their arguments to a higher court.

In response to a 10^th District Court of Appeals ruling today, spokesperson for Ohioans For Financial Freedom Kim Norris said, “The Court got it right in some areas, agreeing that the law creates a burden for Ohioans who want to use the petition process to repeal a bad law.  Where they got it wrong is the burden should be on the State to justify these restrictions, not the people of Ohio, in exercising their Constitutional right.”

Ohioans For Financial Freedom, which has the strong endorsement of the Ohio Chamber of Commerce, Ohio Grocers Association and many other businesses and consumers, has filed more 422,000 signatures from Ohioans with the Ohio Secretary of State to put a Vote NO on Issue 5 measure on the Nov. 4 ballot.  Repealing  section (3) of H.B. 545 gives consumers lending options and allows for short-term loans to be made under H.B. 545.

This case was originally filed in Franklin County Common Pleas Court, and argues there is nothing in the Ohio Constitution which allows any Attorney General to review a summary language of any proposed ballot issue. The Ohio Constitution (Article 2) states specific requirements for initiative and referendum petitions, including signature requirements. It says, “The foregoing provisions of this section shall be self-executing.  Laws may be passed to facilitate their operation, but in no way limiting or restricting either such provisions or the powers herein reserved.”

The lawsuit pointed out no section of the Ohio Constitution requires electors seeking to exercise their reserved power of referendum to prepare a summary of the law, section of law, or item in any law appropriating money, or to submit that summary to the Attorney General of Ohio for her certification. 

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Payday lending law unfair, should be repealed
Cincinnati.com
9/3/2008a
Posted by LettersEditor

In reference to how bad an idea House Bill 545 really is, it’s the attempt by the Ohio government to destroy the payday lending industry and cost 6,000 more Ohioans their jobs. This law would cost people, including me, good-paying jobs with benefits at a time when so many other people have already lost their jobs.

But it’s not that that bothers me; it’s the unfair attacks upon the industry that I work in. Payday loans are fair, short-term ways of meeting unexpected expenses such as doctor bills or car repairs. For a small fee people get the money they need every now and then to make ends meet. We help people.

All financial decisions, payday loans included, should be private and made by the individual and not by the government. That’s why House Bill 545 should be repealed. It’s a bad idea.

Marcie Barnett
Union Township,Clermont County