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Throwing darts

April 26, 2010 | Ohio, industry, regulation | Comments (2)

Weird analogy in yet another Cleveland Plain Dealer editorial about the industry: 

Ohio House members have recrafted a plan to do what Ohio voters in 2008 said loudly, unmistakably, they wanted done — curbing “payday” lenders.

You’d think that question was settled a year ago last November. That’s when 64 percent of those Ohioans voting capped annual percentage rates (APRs) on payday-loans at 28 percent. But you’d be wrong.

That’s because payday lenders reincarnated under Ohio loan laws that let them charge interest and fees that can produce APRs of 391 percent, plus — the very APRs the 2008 law was supposed to prevent.

An Elyria Democrat, Rep. Matt Lundy, aimed to close those loopholes with an Ohio House bill introduced June 4. But a lobbying army hired by lenders, and the betrayal of Ohio consumers by some legislators, seemingly put the kibosh on Lundy’s proposal.

The Cleveland Plain Dealer won’t be happy until Ohio becomes a wasteland.

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Comments»

1. Darren - April 26, 2010

How do laws morph into loopholes to fit an argument…..? Payday lenders in Ohio were told to switch to these so-called loopholes by the same advocates and the legislaters who are now crying foul…This is the latest round of Big government in a state which is losing jobs at an alarming rate.The politicians of Ohio need to stop the bleeding and try to help keep jobs instead of forcing companies out of business.Payday lending like all financial industries cant always wear the white hats because they lend money and cant control, nor do they want to,personal responsibility of there customers…The only way to regulate personal responsibility is to take away peoples freedoms….NO THANKS OHIO

2. the Critic - April 29, 2010

they have already passed a Bill to make it unlawfull to cash loan checks for a fee, it was suposed to go in affect Saturday, but the state issued an extension yesterday.