Self-Serving Legislation - HB 545 Payday Lending in Ohio
Payday lenders in Ohio have been under attack by a so-called consumer watchdog group, The Ohio Coalition for Responsible Lending. This group has demonized the payday lenders by spreading misleading and derogatory stories about these lenders. They have created their own self-serving statistics to lead people to believe that these lenders are predatory and a nuisance.Before the first of the year (2008) it appeared that the Financial Institutions Committee of the House saw through the crude and illogical pitch the coalition was using to get these lenders banned from doing business, even though they were approved and licensed by the state. But the partisan politics started in April when the Governor (a Democrat) insisted that legislation be passed that would reduce the fee charged by these lenders to $1.38 for every $100 loaned out for approximately 2 weeks. Anyone with average intelligence could calculate that no one could lend money under those conditions and make a fair profit.
It appears that the Republican Party figured they better jump on the issue so they would appear to be doing something important in an election year. The under-informed (and misinformed) citizenry would think the legislators did a great deed in protecting them from these lenders. And by doing this the Republicans would stand a better chance of being re-elected in 2008. It would also help the republicans in the presidential race. The Republicans in one day introduced legislation, ran it through committee hearings, and got it passed in the House. They then sent it on to the Senate, which wasted no time in holding hearings, and is expected to vote on it in the next few days. It will undoubtedly pass because the Republicans hold the majority vote in the Senate, as did they in the House.
The legislation sponsored by representative Chris Widener (Republican) is long and lengthily. It makes a mockery of justice and the legislative process. Not only does it take away a service that was valued by thousands of Ohioans (who were not critical of the business or service), but it will result in 6500 jobs being lost and over $200,000,000 annually being taken out of the Ohio economy. There has been no regard for fairness or the negative impact it will have.
We encourage all members to call, write, and fax their Senators and governor ((614) 644-4357 Governor's office) to express their disdain. Tell them that partisan politics and legislation passed solely for the self-interest of the elected officials and the parties is not what we want them doing. Insist that this Bill be stopped. Legislation should always be passed on the merit of the issue - never for the preservation of any party or career of any elected official.