Payday Lending Industry Front Group Website Goes Live
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Categories: Action Alerts, Affordable Healthcare, Budget Priorities, Civil Liberties/Privacy, Consumer and Worker Protection, Corporate Accountability / Workers' Rights, Economic Fairness and Security, Primary and Secondary Education, Education Vouchers and Charter Schools, Higher Education, Honest and Ethical Government, Election Reform, Environment and Conservation, Civil Rights and Equality, Foreign Policy, National Security, Immigration, Media Accountability, Peace and Armed Conflict, Social Justice, Property Rights, Public Infrastructure / Transportation, Religion, Reproductive Rights, Technology and Web 2.0, Separation of Powers / Federalism, Energy Policy, Humor & Sarcasm, Ranting and Venting, African-American Issues, Arts and Culture, Criminal Justice Reform, Faith and Religion, GLBT Issues, Women's Issues, Workers' Rights, News, Opinion, Front Page
Industry Front Group Website Goes Live
The Community Financial Services Association's campaign to overturn House Bill 545 went live with a new website yesterday. Their website, Ohioans4financialfreedom, displays how out of touch they are with real Ohioans.
First, they say: "Protect 6,000 good-paying jobs that could be lost."
This is not accurate. House Bill 545 says absolutely nothing about closing any businesses or preventing the dispersion of payday loans. House Bill 545 simply caps interest rates and fees at 28% APR, protecting Ohio's consumers from predatory 391% APR interest. Payday lending stores have already started applying for licenses to continue operating under the new law from the Ohio Department of Commerce. If any stores close, it's because they choose to, not because they have to.
Second, they say: "Protect your financial freedom and private financial choices."
Payday lenders target low-income neighborhoods where it is easier for them to encourage people to walk through the door. Neon signs with "Get cash in minutes!" and "Easy cash quick," etc. Once a borrower is trapped in a cycle of payday loans, it becomes necessary for the consumer to keep taking out loans. This is not a choice! Usurious payday loans at 391% are bad for Ohioans and bad for the Ohio economy. Usury is not freedom!
Third, they say: "Protect your right to privacy about your personal finances."
This is a nice catch phrase that appeals to just about everyone! House Bill 545 includes a provision calling for the creation of a database that will let lenders know how many loans a person has taken out at a given time. This allows lenders to lend according to borrowers ability to repay - something neither predatory mortgage lenders nor payday lenders seem to care about.
And finally, once again, the industry uses their lame argument for why their referendum should be on the ballot: "Ohioans have a right to repeal bad laws."
Well, it bears repeating that House Bill 545 is one of the best consumer protection laws in the country and will help hundreds of thousands of Ohioans escape the debt trap. Ohioans do have a right to overturn bad laws, but this referendum effort is not being mounted by Ohioans, but by industry lobbyists and attorneys flown in on their corporate jets. Where are the citizens working on this referendum? Where are the consumers calling for 391% interest? They are nowhere to be found. Instead, the industry lobby CFSA is the sole donor to the effort to repeal House Bill 545. This is right in line with what they are doing in other states like Arizona where they've spent $8.7 million to overturn a consumer law and in Virginia where they succeeded in buying higher interest rates for a low, low price of $20 million.
The Ohio government should be PROTECTING consumers from predatory business practices that rely on borrowers getting trapped in a cycle of debt! Payday lending is bad for Ohio!
The Community Financial Services Association's campaign to overturn House Bill 545 went live with a new website yesterday. Their website, Ohioans4financialfreedom, displays how out of touch they are with real Ohioans.
First, they say: "Protect 6,000 good-paying jobs that could be lost."
This is not accurate. House Bill 545 says absolutely nothing about closing any businesses or preventing the dispersion of payday loans. House Bill 545 simply caps interest rates and fees at 28% APR, protecting Ohio's consumers from predatory 391% APR interest. Payday lending stores have already started applying for licenses to continue operating under the new law from the Ohio Department of Commerce. If any stores close, it's because they choose to, not because they have to.
Second, they say: "Protect your financial freedom and private financial choices."
Payday lenders target low-income neighborhoods where it is easier for them to encourage people to walk through the door. Neon signs with "Get cash in minutes!" and "Easy cash quick," etc. Once a borrower is trapped in a cycle of payday loans, it becomes necessary for the consumer to keep taking out loans. This is not a choice! Usurious payday loans at 391% are bad for Ohioans and bad for the Ohio economy. Usury is not freedom!
Third, they say: "Protect your right to privacy about your personal finances."
This is a nice catch phrase that appeals to just about everyone! House Bill 545 includes a provision calling for the creation of a database that will let lenders know how many loans a person has taken out at a given time. This allows lenders to lend according to borrowers ability to repay - something neither predatory mortgage lenders nor payday lenders seem to care about.
And finally, once again, the industry uses their lame argument for why their referendum should be on the ballot: "Ohioans have a right to repeal bad laws."
Well, it bears repeating that House Bill 545 is one of the best consumer protection laws in the country and will help hundreds of thousands of Ohioans escape the debt trap. Ohioans do have a right to overturn bad laws, but this referendum effort is not being mounted by Ohioans, but by industry lobbyists and attorneys flown in on their corporate jets. Where are the citizens working on this referendum? Where are the consumers calling for 391% interest? They are nowhere to be found. Instead, the industry lobby CFSA is the sole donor to the effort to repeal House Bill 545. This is right in line with what they are doing in other states like Arizona where they've spent $8.7 million to overturn a consumer law and in Virginia where they succeeded in buying higher interest rates for a low, low price of $20 million.
The Ohio government should be PROTECTING consumers from predatory business practices that rely on borrowers getting trapped in a cycle of debt! Payday lending is bad for Ohio!
I ran into them at the Irish Festival in Dublin and they told me they were the people who want to LOWER your interest rate. I didn't sign because I thought maybe they were lying, but then I thought maybe there were two petitions: One to help the consumers and one to keep screwing them over.
So I called my state representative who assured me there is only one set of petitions. Then I saw the news article that said the entire petition campaign is being paid for by the lenders.
I know we are to support free speech, but is it legal to lie to people to get them to sign petitions?
She said, "Oh no. We want to lower the rates to make them affordable.''
Don't sign the petitions. These guys are liars.
Where will these people go to get loans? Do you think that by passing this law, magically... new, kinder, gentler banks will lovingly materialize and gladly loan money at 28%?
Where will they get their loans?
From credit unions -- or even lenders operating under the new 28% rate cap. You act like these guys can't make money by charging 28%. That's pretty amazing.
But I'm rooting for the credit unions. They don't seem to be as evil or greedy as they payday lenders.
DON'T SIGN THE PETITION!!!!!!
Are these poor people being dragged down back alleys and forced to sign these dreaded loan papers by the predatory lenders?
Are credit unions barred from setting up shop in neighborhoods where the evil payday lenders are?
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