"WITH GOD ALL THINGS ARE POSSIBLE"  Ohio State Motto

Our position is that the legislation that passed the Ohio Legislature was an overreaction to some needed regulation in the payday advance industry. There is concern that we all have about borrowing indebtedness of those who take out multiple payday loans. The payday lending industry has begun to implement its own regulations so that individuals cannot take out multiple loans, creating a cycle of debt that they cannot get out of. However, even that is a small percentage of those who utilize the payday option. The 391% interest that is quoted is a worst-case-scenario that would occur if a person was to take out a loan week after week for an entire year. The overwhelming majority of those who use the payday option pay only 15% for a two-week loan. The payday industry is providing a service to individuals who cannot secure a loan through a traditional bank, do not have good credit and cannot obtain a credit card. This is a viable option for those individuals who need small loans with low interest. Like all borrowing, it needs to be conducted responsibly. Regulation in the industry is needed, but HB 545 is not the answer. Hard working Ohioans need not to be locked out of viable credit options, especially in these economic times. Therefore, we suggest a vote NO on Issue 5.