Ohio bill could lower payday loan cap to 28%

COLUMBUS: In a surprise move Tuesday, House Republicans introduced legislation that would cap the annual percentage rate charged on payday loans at 28 percent.

[Bill]

Now They Are Going To Tell You What You Can Do With Your Money."What Next" They Will Spend It For You.

[Jeff]

This is great news. Payday lending takes hundreds of millions of dollars in fees from Ohio workers and puts it on the pockets of a handful of executives. Imagine what can happen to Ohio's economy when over 500,000 Ohioans now have at least an additional $500 that isn't being wasted on these legal loan sharks. Kudos to the House Republicans (and Democrats) on this bill!

[Why]

Why would anyone want to go to a Payday lending @ 28%? An if you do thats your problem. Just run the numbers before you sign. It's that easy.
If you need cash call me I only charge 35% on loans per payday.
Again Why does any one go there?

[Because]

The reason why is because not all of us make the money you do. Some of us have some unforseen circumstances come up that make us run for money anywhere we can. For those of us barely making it paycheck to paycheck with all of the rising costs around us, these place can be a saviour at times. Before you jump on me and tell me to get a job, I have one, a decent one, but due to some unfortunate circumstances my wife can't have one, so that leaves one income for a family of 4.... you give that shot and let me know how it goes.

[Old Man Grump]

If the Pay Day lending bill passes as described, Pay Day lending is over in Ohio. No one will take the risks of Pay Day loans with a 28% return on money rate. I don't believe the people who have to use Pay Day loans at a last resort will want that to happen. Now where will they go for loans - the street loan sharks again who break legs and arms for non-payment? This is a bad bill and I think the GOP legislature knows it. Governor Strickland will look like an_A$$ if it passes.

[Ken]

If you must police pay day lending, give them a pay cut don't put them out of business. Why not find and prosecute the corporate criminals responsible for the subprime mortgage crisis? As far as I know, nothings been done about that except making loans more difficult to obtain. Give the pay day lenders a 30-50% pay cut not a 90% pay cut. The legislators will create more crime and truly usurious street lending with this bill.

[AppleJack]

about time

[nairb]

How much longer are we going to put up with the socialism that is running rampant in our government. It is the fault of the people for turning to the payday lenders in the first place.
The payday lenders run a business. It is the fault of the people for using them. The people should educate themselves on why most of the lenders end up in the lower income neighborhoods and realize there are better ways to get money loaned to you.

[Scooter Moonpie]

Why wrote:

Why would anyone want to go to a Payday lending @ 28%?

Why would anyone go there for a 390% APR like they do today?

I can think of two reasons:(1) desperation (2) ignorance.

If this law passes, I can't wait to see all these storefront loan sharks go belly-up. Seems there's one on every block anymore.

[Because]

I will raise the question.... how do we help the people that need these guys to help them "float" money for a few weeks? Not everyone lives the life of luxury.

[AppleJack]

nairb wrote:

How much longer are we going to put up with the socialism that is running rampant in our government. It is the fault of the people for turning to the payday lenders in the first place.
The payday lenders run a business. It is the fault of the people for using them. The people should educate themselves on why most of the lenders end up in the lower income neighborhoods and realize there are better ways to get money loaned to you.

Crime is a business too and it's illegal. Look up "loan sharking".

[DEAN]

what about the fees they could put in place to offset the intrest?

[reality check]

the sooner the pay day loan predators are run out of Ohio, the better...

[JCajigas]

I hear this outcry that "no one will be able to get a fair loan," but how fair is a loan with such a high interest rate that it sucks the person into a cycle of debt.

I honestly think that having these loans available tempts people to overspend on their budgets because they know they can "just get a payday loan." If the safety-net of a payday loan to cover the bills wasn't there, perhaps people would find another way to make due - budgetting.

As for those who use that money because they are below the poverty level and cannot afford to live on their salary, lending to them is predatory and inappropriate. They should be seeking government assistance or career placement instead of payday loans.

I think the entire situation is sad, and the only people who really lose are those who work for these lending companies.

[JCajigas]

Hmm... having read some of your comments, it's nice to have something in place for emergencies, but not if you're going to have to pay tons of interest and it throws you into a tailspin of continually borrowing.

To those of you who commented that "you're not rich" like others and need the loans - how many of these loans have you taken out on average? How were you able to pay them off? I'm interested in knowing from those who support it how they can work in a positive way.

[payday lending rep]

With a 28% cap Ohio will force small, short term loans and the stores that offer them to disappear. 7,500 hardworking employees of payday lending stores that will lose their jobs and livelyhoods. In a state where jobs are difficult to come by, foreclosures are on the rise and the combined pressures of rising food and gasoline prices are weighing heavily on working families, legislators should not be celebrating putting hardworking Ohioans out of work.

[JCajigas]

P.S. Because - my father supported all four of us and my mom for 16 years, on one job (and an occasional teaching or consulting gig).

It wasn't the lap of luxury, we never had name brand clothes or lots and lots of toys, but we ate well, had a decent home, went to a good school and grew up just fine. And my father and mother didn't ever have to float money on payday loans.

They made it on one salary, my dad worked full-time and went to night school to better his career and somehow they ended up on top.

[Because]

it's obvious that everyone here making comments and even those writing the laws have never had to use a payday loan. You all think that everyone that needs one is "overspending" or incapable of making a budget. This is just like the American Government. They make assumptions about everyone. I guess it's not possible for medical costs, a car or home repair, or any other emergency to come up. You think that everyone has a "nest egg" somewhere they can pull $100 from at the drop of a hat. Some of us aren't so lucky. The needs of my family are met, but any other circumstances that may arise are difficult to handle. During those few (less than 4) times a year when they come up, I'm willing to pay a few bucks to get the money needed when I need it.

[JCajigas]

Because - I'm just thinking that there's gotta be a better way.

[Because]

what way is that? Don't think for a minute we haven't explored other options; my family doesn't have money to "give" away, a long term loan is not a solution for a few hundred bucks, I've held a 2nd job at times, and honestly, I'd rather spend the $30 to get some money and have quality time with my family instead of holding down a second job. I do understand that there are people out there that may "abuse" the system, but I'm sure there are others like my family that "need" these guys at times.