Despite significant support, future uncertain for Ohio payday lending reform bill


COLLEEN: AS WASHINGTON TRIES TO REGULATE PAYDAY LOANS, WE’RE DIGGING DEEPER INTO WHAT LAWMAKERS HERE IN OHIO ARE DOING ON THAT ISSUE. MIKE: OUR OHIO STATEHOUSE NEWSROOM REPORTER JASON AUBRY TELLS US A REPUTABLE NATIONAL ORGANIZATION IS SUPPORTING THE REFORM EFFORTS. JASON AUBRY, “OUT OF THE 88 COUNTIES IN OHIO 76 OF THEM HAVE PAYDAY LOAN STORES. AND MANY OF THOSE LENDERS ARE FOUND IN PREDOMINANTLY POOR BLACK NEIGHBORHOODS.” DANIELLE SYDNOR WITH THE CLEVELAND BRANCH OF THE NAACP SAYS PAYDAY LOAN OPERATORS ARE PREYING ON HER COMMUNITY. DANIELLE SYDNOR, NAACP “IN THE URBAN CORE, AS FOLKS LIKE TO CALL IT NOW, YOU DO SEE THESE LOCATIONS; YOU SEE A TITLE STORE NEXT TO A CHECK CASH ADVANCE; SO EVERY DIFFERENT TYPE OF LENDER THAT CAN FIND A STORE FRONT, IS PUTTING UP SHOP IN CLEVELAND.” THEY SUPPORT HOUSE BILL 123 WHICH WOULD CAP INTEREST RATES ON THESE KIND OF LOANS AT 28 PERCENT. “PEOPLE DO NEED ACCESS TO CREDIT BUT IT SHOULD NOT BE AT THE RATES THAT WE ARE SEEING IN TODAY’S MARKET PLACE.” NICK BOURKE IS THE DIRECTOR OF CONSUMER FINANCE AT THE PEW CHARITABLE TRUSTS. HE SAYS THIS BILL WILL BRING THE STATE IN LINE WITH OTHERS. NICK BOURKE, THE PEW CHARITABLE TRUSTS “IT’S REASONABLE REFORM THAT KEEPS ACCESS TO CREDIT AVAILABLE WHILE ALSO LOWERING PRICES AND INSURING AFFORDABLE PAYMENTS AND A REASONABLE TIME TO REPAY IT.” THE OHIO CHAMBER OF COMMERCE OPPOSES THE BILL AND SAYS THE CAP IN INTEREST RATES AS PROPOSED IN THE BILL WOULD MAKE IT DIFFICULT FOR BUSINESSES TO COVER THEIR OVERHEAD COSTS AND THEY MAY CLOSE AND THAT WOULD HURT CONSUMERS. BOURKE SAYS, THOSE COMPANIES ARE MAKING ENOUGH MONEY TO COVER THE CAP. “OHIO HAS THE WORST PAYDAY LOAN MARKET IN THE COUNTRY. BECAUSE IT’S SO UNREGULATED AND LENDERS ARE DOING WHATEVER THEY WANT OHIOANS PAY THE MOST; THEY PAY FOUR TIMES MORE IN OHIO THAN THE SAME COMPANIES CHARGE THE SAME TYPES OF BORROWERS ELSEWHERE.” JASON AUBRY, “THE CHAIRMAN OF THE COMMITTEE HAS NOT DECIDED IF OR WHEN THE BILL WILL GET ANOTHER HEARING. AT THE STATEHOUSE JASON AUBRY NBC FOUR.”

Leave a Reply

Your email address will not be published. Required fields are marked *