They are stacking the deck against the payday lending industry, but we’re fighting back. This Columbus Dispatch story captures the latest:
House leaders said the bill is an effort to deal with the debt trap associated with payday loans: Many borrowers repeatedly take out new loans to pay off old ones.
The industry, which has grown from 106 stores in 1997 to more than 1,600 today, says the bill would put it out of business. Payday lenders are pushing back with:
• More lobbying.
• More phone calls.
Senate offices reported getting between 50 and 150 calls apiece last week from payday-lending employees who, reading from scripts, urged defeat of the bill. “Thank goodness for caller ID,” said one staffer before sending another call into voice-mail.
• More visibility.
In addition to packing the hearing room for proceedings that stretched into last night, about 2,500 payday-lending employees and supporters rallied Tuesday at the Statehouse.