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ACTION ALERT: Payday lending reform needs 100 calls

Do you think that Ohio should have the worst payday lending interest rates in the country that can be around 600%? If no, then please call your Ohio House Representative today to support House Bill (HB) 123.

The House Government Accountability and Oversight Committee recently voted 9-1 to move HB 123 forward. With enough pressure from constituents, the bill is likely to come before the full House for a vote in mid-May. This is coming after revelations of an FBI investigation of payday lender lobbyists providing lavish international travel to the ex-Ohio House Speaker.

It is critical we make our voices heard to legislators over these two weeks. We can’t become complacent.

Our goal is to have House members receive 100 calls urging them to vote YES on this bill. Will you be one of those calls?

Please call your members of the Ohio House and ask them to vote YES on HB 123 to protect consumers and reject the influence of predatory payday lenders.

Here’s a simple sample of what you can say:

My name is ____ from ____. I am calling to urge you to vote YES on bipartisan payday loan reform, HB 123, to protect consumers and reject the influence of predatory payday lenders. Can we count on your support?

After you call, feel free to send us a note telling us how it went, and so we can thank you for your advocacy.

In case you missed the recent coverage, check out:

Editorial: Ohioans Deserve Answers to Payday Lending Questions
The Columbus Dispatch

Payday Lender Made International Trips with Ohio House Speaker
Dayton Daily News

Your calls can and are making a difference.

Thank you for your advocacy!

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ACTION ALERT: Payday Lending Scandal

Dear Members & Stakeholders:

OCDCA has been involved in a coalition, Ohioans for Payday Lending Reform, to enact meaningful payday lending reform. Ohio has the highest costs in the country with the typical loan APR close to 600%.

This week following the resignation of House Speaker Cliff Rosenberger over an FBI investigation with ties to payday lending lobbyists and lavish international trips, HB123, which has been in the house for over a year and would create meaningful payday lending reform, came up for a hearing in the House Government Accountability & Oversight Committee.

A compromise amendment with support of house leader Kirk Schuring and the bill’s bipartisan sponsors was expected to be voted quickly out of committee. The amendment would close the Credit Service Organization (CSO) loophole, includes a six-month minimum loan term with no early payment penalty and a 50% limit on the total costs and, although not perfect, would lead to dramatically lower costs than today. Payday lender lobbyists vigorously opposed the amendment and exerted tremendous pressure to stop a vote on HB123 from happening.

Your voice is needed more than ever.

Call your representatives at the statehouse today and demand that they pass payday lending reform now to protect people, not predators.

Here’s a proposed phone script:

Payday loan borrowers in Ohio need relief now. Pass HB123 out of the House immediately (if necessary, with friendly amendments from bipartisan co-sponsors Reps. Koehler and Ashford). The bill is a compromise that keeps credit available. It is critical that Ohio closes the CSO loophole, reins in the exorbitant prices and gives borrowers enough time to repay. Payday lenders and their lobbyists are doing everything they can to stop real reform from moving forward. Protect people, not predators.

Check out the latest coverage of the developing story in The Columbus Dispatch and Statehouse News Bureau.

For a quick read on what happened at the Statehouse, read and retweet Brent Larkin’s fiery column that ran in The Plain Dealer or the Akron Beacon Journal‘s editorial.

Please share this email. Now is the time to enact reform and for the legislature to represent people, not payday predators!

Thank you for your advocacy,
Nate Coffman
Executive Director
Ohio CDC Association

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Congress considers going easy on predatory lenders

The New York Times Editorial Board:

“The payday lending industry is pressing its friends in Congress to repeal rules that shield borrowers from short-term loans that trap them in debt at interest rates of 400 percent or more. The rules were issued last year by the Consumer Financial Protection Bureau in a last gasp of consumer financial protection before President Trump appointed Mick Mulvaney as its new chief.

The new administration is openly hostile to the rules — which become effective in August 2019 — and is clearly looking for ways to undermine them. Meanwhile, bills introduced in both the House and the Senate would repeal the rules outright, opening the door for the return of lending practices that make working-class families poorer.

The payday industry advertises itself as a source of “easy” credit for workers who run short of money before their next paycheck and take out loans that are typically supposed to be repaid within two weeks. But there is nothing “easy” about this arrangement, as the consumer protection bureau showed in a study of more than 12 million loans. Among other things, the research revealed that the industry relies on people who can almost never repay on time, which usually means they borrow over and over again.

Among the study’s findings: Eighty percent of payday loans were rolled over or renewed within two weeks; three out of five loans were made to borrowers who paid more in fees than they borrowed; four out of five borrowers either defaulted or renewed a loan over the course of a year; and one in five payday borrowers — including elderly people on fixed income payments — remained mired in debt for the entire year.

As they press for federal legislation to overturn the rules, the lenders have been lobbying state legislatures to expand their right to issue payday loans for longer than 45 days, loans that would not be covered by the regulations.

The industry spent lavishly in Florida to pass a law that will allow an annual rate of nearly 300 percent on a three-month loan of $1,000, according to an analysis by the Pew Charitable Trusts.

The lenders are blocking bills restricting the industry in other states, including Ohio, where borrowers typically pay an annual rate of 591 percent — the highest payday loan costs in the United States.

Read the full editorial.

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What’s happening? Payday lending reform & federal budget

A brief sample of our February 2018 newsletter: What’s Happening in Ohio Community Development?

First round of signatures filed to put payday lending reform initiative on statewide ballot

Leaders of an initiative to put payday lending reform on the November statewide ballot on Wednesday turned in over 2,000 petition signatures to the Ohio Attorney General’s Office. This is the first step to getting the measure on the ballot. Backers are pursuing this direction because state lawmakers have not acted on reform. The petition language calls for a constitutional amendment that would cap payday loan interest rates in Ohio at 28%. Pastor Carl Ruby, of Springfield, and Nate Coffman filed the petitions. At least 1,000 of the Ohio voter signatures must be validated and the Attorney General’s Office must determine that the summary of the proposed constitutional referendum is a fair and truthful representation of the proposed law.

Payday lenders charge an average 591% annual percentage rate in Ohio, the highest such rate in the nation. Pastor Ruby said that rate is ridiculous, and he is tired of seeing lenders gouge vulnerable, lower-income working Ohioans. The ballot initiative mirrors some of the reforms called for in the bi-partisan  HB 123, which seeks to establish a maximum interest rate on such loans of 28% plus a maximum monthly fee of $20. Coffman pointed out that in 2008, Ohioans overwhelmingly voted in favor of payday lending reforms. “Since then, payday lenders have by-passed the will of the people and state law and are charging even higher prices,” he said. “That’s unacceptable, and we are certain Ohio voters will agree if legislators themselves don’t move quickly on reform.” View Nate on the  The State of Ohio show (12-minute mark) and  In Focus. Check out more coverage from the Columbus Dispatch, Plain Dealer, Dayton Daily News, WHIO, and WKSU.

The coalition would like to thank the many OCDCA members that collected signatures during a short window of time.

The coalition will be in touch soon with a call for volunteers for the second phase of signatures.

 

Read the whole newsletter or subscribe to it!

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First round of signatures filed to put payday lending reform initiative on November statewide ballot

“We are certain voters will support this if legislators don’t act on reform”

Pastor Carl Ruby and Nate Coffman explain the necessity for payday lending reform.

Leaders of an initiative to put payday lending reform on the November statewide ballot this morning turned in over 2,000 petition signatures to the Ohio Attorney General’s Office. This is the first step to getting the measure on the ballot. Backers are pursuing this direction because state lawmakers have not acted on reform.

The petition language calls for a constitutional amendment that would cap payday loan interest rates in Ohio at 28%.

Nate Coffman, of Ohio CDC Association in Columbus, and Pastor Carl Ruby, of Springfield, are filing the petitions. At least 1,000 of the Ohio voter signatures must be validated and the Attorney General’s Office must determine that the summary of the proposed constitutional referendum is a fair and truthful representation of the proposed law.

The Attorney General must then certify the petition to the Secretary of State. At that point, Coffman, Ruby and other supporters can start collecting the 305,591 valid registered voter signatures that must be filed by July 4 in order to get the issue on the November ballot.

“These petitions, these signatures are proof that we mean business,’’ said Coffman. “It’s been nearly 12 months since a bi-partisan reform bill, House Bill 123, was introduced and the legislation has stalled ever since. It seems like they don’t care that every day this bill doesn’t move forward, it costs Ohioans an average of $200,000 in excessive borrowing costs, or about $75 million annually. That’s not acceptable. And that’s why we are pushing for a ballot issue.’’

Payday lenders charge an average 591% annual percentage rate in Ohio, the highest such rate in the nation. Pastor Ruby said that rate is ridiculous, and he is tired of seeing lenders gouge vulnerable, lower income working Ohioans.

It’s time for the voters of Ohio to have their say, because apparently many in the legislature are not willing or eager to advance

Pastor Carl Ruby and Nate Coffman submitting over 2,000 signatures to the Attorney General’s Office.

HB 123,’’ said Ruby. “With a few notable exceptions, they seem more interested in placating the special interest groups who are profiting from these loans, than in protecting the working class borrowers who are sinking deeper and deeper into debt.’’

The ballot initiative mirrors some of the reforms called for in the bi-partisan HB 123, which seeks to establish a maximum interest rate on such loans of 28% plus a maximum monthly fee of $20.

Coffman pointed out that in 2008, Ohioans overwhelmingly voted in favor of payday lending reforms. “Since then, payday lenders have by-passed the will of the people and state law and are charging even higher prices,’’ he said. “That’s unacceptable, and we are certain Ohio voters will agree if legislators themselves don’t move quickly on reform.’’

Members of Ohioans for Payday Loan Reform, a diverse statewide coalition of more than 100 individuals and organizations that support passage of HB 123, will be asked to support the ballot initiative.

Nick DiNardo, of Cincinnati, and Michal Marcus, of Cleveland, are joining Ruby and Coffman in the push for a November ballot vote. 

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Nate Coffman on In Focus with Mike Kallmeyer

Yesterday, our executive director, Nate Coffman was on In Focus with Mike Kallmeyer to talk about Ohioans for Payday Loan Reform and the statewide citizens initiative to get a ballot measure in November combating predatory lending in Ohio. 

Payday loans in Ohio are the most expensive in the nation, with an astounding typical annual percentage rate (APR) of 591%.

Ten years ago, Ohioans voted by a nearly 2:1 margin to implement reasonable reform to the payday lending industry, but that language had a loophole, which allowed the predatory lending industry to go unchecked in Ohio.

On a federal level, the Consumer Finance Protection Bureau is continuing to drop cases regarding outrageous practices of payday lenders. That is why we need real reform now.

Watch the nearly eight minute video.

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Check out Nate Coffman on The State of Ohio

Check out today’s episode of The State of Ohio with Karen Kasler as they discuss payday lending reform in Ohio. Our own Nate Coffman talks about the statewide citizens initiative alongside Rep. Kyle Koehler (R – Springfield), who was the primary sponsor on the bipartisan HB123 which also seeks to address the unchecked power of predatory lending in Ohio.

Payday loans in Ohio are the most expensive in the nation, with an astounding typical annual percentage rate (APR) of 591%. That is why we need real reform now.

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NEO: Payday lending reform needs your help – January 17th at 10 am

Payday loans in Ohio have the highest APR (591%) in the nation! House Bill 123 would reform those loans, with interest rates at 28% plus a monthly fee of no more than $20. There is a major hearing on this bill tomorrow, Jan. 17, in Columbus. The campaign needs to fill the bus with people who support payday loan reform.

The bus will leave at 10 a.m. Wed., Jan. 17, from the parking lot of Rockside Corners Shopping Center, 6901 Rockside Rd, Independence, OH 44131. This is just east of I-77 and pretty easy to get to. There’s plenty of parking available.

Those on the bus will get lunch at the statehouse prior to the hearing and will meet with Rep. Kyle Koehler of Springfield, one of the co-sponsors of the bi-partisan bill. They will have some T-shirts for supporters, who will attend the hearing. They also may be asked to stand next to or behind any of our supporters who testify if they are being interviewed by media before or after the hearing. The bus will leave Columbus at about 4pm.

Please help to fill the bus by urging staff or residents that are concerned about this important issue.

Any questions can be directed to Betsy O’Connell at boconnell@lesiccamper.com or 216.702.4331. She would like to know who is coming on the bus, so she can give that information to Danielle Sydnor, a supporter and official with the Cleveland NAACP who will be on the bus and will be briefing attendees.

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Ohio really suffers from payday lending

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This recent article by Al Jazeera America illustrates just how bad the payday lending environment is in Ohio. We are lagging behind much of the country in this area, primarily because of policy loopholes that allow the lenders to act as brokers. Because of this, they can charge ridiculous fees that are “broker fees” rather than interest. Here is the staggering result:

“A 2014 short-term lending study led by Kent State University economics professor Shawn Rohlin estimated that the industry makes 6.5 million loans in Ohio annually, with a total loan amount of $3.7 billion.”

There are some words in the article by Jeffrey Diver, Executive Director of OCDCA Member, Supports to Encourage Low Income Families (SELF). It’s a good and interesting read, but brace yourself.