Posted on 12 May 2008. Tags: Columbus Dispatch, HB 545, Miami University, Ohio, Oxford, rate cap, Saul Adelman
Saul W. Adelman, Associate professor of finance at Miami University in Oxford, Ohio has this to say in a letter to the Columbus Dispatch.
Ohio House Bill 545, which is headed for debate in the Ohio Senate, should not be approved. This bill, which would cap the annual interest rate for payday loans at 28 percent, supposedly would help individuals who opt to use payday-loan services. This is a populist bill that ignores reality and would result in the opposite happening.
Let’s look at the facts:
• The reason payday loans exist is that the other financial institutions fail to meet this need. Payday lenders, seeing an opportunity to make a profit, have filled the void.
• There is a lot of risk associated with this type of lending and, therefore, it commands a high interest rate.
• Payday loans are cheaper than bouncing a check.
…I am not advocating the use of this type of loan as a steady diet, and I do recognize the dangers. But comparatively, the dangers of bouncing checks and the associated damage to your credit, bank relations and bank balance are considerably worse. The bottom line is that people using payday loans are generally making a rational choice. House Bill 545 should not be passed. And you have to wonder which industries are behind this legislation.
Posted in Columbus Dispatch, industry, media coverage, Ohio, positive media coverage, regulation, states
Posted on 08 May 2008. Tags: Casey Maloney, employees, HB 545, Ohio, phone calls, Tom Sawyer
The Payday Pundit just received this regarding our recent post about employees making their voices heard:
Not only are they not answering phones– they are rude when they do!! I emailed the following to Senator yesterday…
Wednesday May 7, 2008
Dear Senator Sawyer-
I called in to your office to ask for your support of HB 545 today. Unfortunately I was met with LAUGHTER from one of your Aides when I stated the reason I was calling.
Imagine my surprise that an Aide to a Senator thinks me losing my job (along with 6000 other Ohioans) is amusing!!
Whatever their personal opinion of HB 545 is their business, but I don’t think the appropriate professional response from an Aide is laughter and enjoyment at my expense.
I am truly disgusted.
Sincerely,
Casey Maloney
From Ohio senate staffer forgets who pays their salary, 2008/05/08 at 8:15 AM
Posted in employees, industry, Ohio, regulation, states
Posted on 06 May 2008. Tags: employees, HB 545, job loss, Ohio, rally
Rally was a huge success. Well over 2,000 employees. Speakers included industry CEOs, employees, a state senator and small lenders. Lots of media to get the message out.
Posted in employees, industry, Ohio, regulation, states
Posted on 06 May 2008. Tags: employees, HB 545, Ohio, rally
The word from people on the ground is that more than 2,000 payday lending employees are there and they’re really letting lawmakers hear them. Lots of media coverage as well.
More pics to come.
Posted in customers, industry, Ohio, regulation, states
Posted on 06 May 2008. Tags: Columbus, employees, HB 545, job loss, Ohio, rally, state regulation
Posted in employees, industry, Ohio, regulation, states
