ProgressOhio

Payday lenders are pursuing two different ballot issues that would overturn a recent law eliminating the short-term, high interest loans.

After Attorney General Nancy Rogers rejected the committee's first submission of summary language for the proposed referendum, the Reject H.B. 545 Committee submitted a revised version last week. Then, two days later, the committee proposed another issue that would repeal only language pertaining to payday loans. . . .

Consumer advocates reacted angrily and sent a letter to Attorney General Rogers asking her to reject both referendum petition summaries.

Bill Faith, executive director of Coalition on Homelessness and Housing in Ohio, said the latest referendum attempts to mislead voters by not explaining that it would increase the interest that lenders could charge.

"The summary does not mention either the 28% rate cap or note that voter approval of this referendum would result in lenders being permitted to charge 391% APR," he said in the letter.

Sen. Jeff Jacobson (R-Dayton) added support for the opponents' arguments.

"The clear intent of the petitioners is to create a potential choice of law scheme that will effectively exempt them from the most important element of HB 545, the 28 percent rate cap on payday loans, and other reform measures, including those designed to curb repeat borrowing," the senator wrote to Ms. Rogers. "This basic omission will invariably deceive potential signers."

Gongwer News Service Ohio (Sub req'd)

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