Ohio Payday Lenders Lie, Bribe The Homeless In Attempt To Overturn Usury Limits

Ohio payday lenders, still smarting from their punch in the face, are turning to lies and deceit to qualify a ballot initiative that would overturn the state’s recently approved usury limits. The industry’s petition gatherers are telling people that the initiative would “lower interest rates,” even though it would raise the maximum allowable APR from 28% to an astounding 391%. They’re also giving dollars to illiterate homeless people who sign the petition.

Serve City director Kay Waldo said she felt the people at the shelter were victims of a crime.

“Absolutely,” she said. “I think they take advantage of the people here. I really do.”

Waldo claimed that some of the people at the shelter don’t even know how to read.

“They’re being asked to sign something without even being able to read it,” she added. “It’s a crime as far as I look at it.”

“If something was said incorrectly, let the circulator’s name be obtained and we will take swift action to investigate and remove that employee if necessary.” Norris added.

The payday lending industry, of course, has plenty of experience taking advantage of people.

WCPN produced a segment on the dirty industry’s dirty campaign:

We’re won’t feign surprise that payday lenders are resorting to underhanded tactics. Usury laws, election laws, ethics; it’s all the same crock of unreasonable bullshit to them.

Ohio Payday Lenders Caught Lying in Ballot Initiative Signature Drive [Consumer Law & Policy Blog via Caveat Emptor]
Payday Loan Petitions Doubted [WCPN]
Ohio Payday Lending Law Change Battle Heats Up [WCPO]
PREVIOUSLY: Ohio Passes Legislation That Will Punch Payday Lending Industry In The Face
Ohio Senate Passes Strict Lending Legislation, Prepares To Punch Payday Lenders In The Face
Ohio Punches Payday Lending Industry In The Face, Breaks Its Nose, And Laughs
(AP Photo/Seth Perlman)

Comments

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  1. Pylon83 says:

    The Max APR law in Ohio is total BS. They are forcing legitimate businesses out of business. Where are the people who need payday loans going to go when Ohio forces all of them out? When the working single mother’s car breaks down and she doesn’t have credit or family to to help pay for it? There is no reason for these laws other than protecting some people from their own bad choices. Unnecessary.

  2. Nakko says:

    @Pylon83: I disagree. These guys are barely legal loan sharks. And besides, these are not “legitimate” businesses if the state passes legislation stating the highest “legitimate” APR is 28%.

    These guys are predatory vultures. They don’t “help out single moms”. That’s a cop out and a lie.

  3. Caroofikus says:

    @Pylon83: That sounds like some load of crap their petition gatherer’s would throw out. Sure you’re not one of them?

  4. laserjobs says:

    Payday lenders would not exist if there was not a demand. Ohio putting them out of business is anti-capitalistic and anti-American.

  5. mechfluff says:

    @Nakko: well said.

    payday lenders are a scam. they operate here in SC with the ridiculous %300+ rate and get away with it. the law in SC puts a limit on how many loans you can get at a lender in a certain period of time, so they open new branches under different names right near each other to bypass this law and allow more frequent repeat loans.

    if they weren’t so involved with the local government, i believe that they would already be out of business altogether.

  6. humorbot says:

    @Pylon83: Assuredly that 391% APR is crafted with the suffering single mother in mind. Sounds really helpful.

  7. williehorton says:

    Wow… we have two Payday Lender Trolls this morning.

    Full disclosure, laserjobs and Pylon83: which payday lenders do you work for?

  8. mechfluff says:

    @laserjobs: but they prey upon the poor who don’t qualify for a decent loan or don’t read the fine print. it is deceptive and shady to advertise a rate and then stack in various fees to jack it up to nearly %400.

    %29 is a perfectly reasonable price gouge for a higher risk loan considering that someone with good credit can get a loan for %4 to %7.

  9. Pylon83 says:

    I would think that paying a high interest rate is better than not getting the money at all. The problems with Payday loans don’t stem from one time or occasional users, they stem from those who repeatedly use the services. The government isn’t supposed to be a babysitter to protect people from themselves. That said, I don’t necessarily believe that loan sharking should be illegal, save for their unsavory collection methods. It’s simply a contract. If one party doesn’t like the terms, walk away. Freedom to contract is a pretty basic right that the government shouldn’t be dabbling in. It’s all about personal choices and responsibility.

  10. penarestel says:

    @Caroofikus: It is the same load of crap that the petition gatherers are spewing.

    They’re even putting out commercials with that crap in it.
    It’s annoying, to say the least.

  11. ReidFleming says:

    News reports indicate mainstream banks are already filling the gap for low-income borrowers. Currently, if your only option sucks — you still have to take it. Saying ‘free market’ doesn’t excuse the practice any more than ‘might makes right’ does. Sure, there’s risk for the lenders but that doesn’t excuse the debt spiral oftentimes incurred by the lenders.

  12. Pylon83 says:

    @williehorton:
    I do not currently nor have I ever worked for or had any financial stake in a Payday loan service. I’ve never used one nor do I know anyone who has.

  13. laserjobs says:

    I do not have anything to do with Payday lenders in anyway. I am fairly sure Ohio is putting them out of business for some political reason, not because they are preditory. My guess is the banking lobby is behind it to snag up this business with lower APRs but huge application fees. If there is a demand, someone will supply it if it is profitable. If payday lending is so profitable, why are the payday lenders not undercutting each other? If anyone thinks it is good to throw the payday lenders out of business, just wait until your taxes get raised because these people “need help” and the risks are now backstopped by your local government.

  14. mechfluff says:

    @mechfluff: oops, I was wrong about my comment on SC regulation.

    SC has NO regulation on these loan sharks. I was mis-referencing a fed restriction.

  15. Hawk07 says:

    However, when do we know when enough is enough with government interference? Where do you draw the line?

  16. ReidFleming says:

    It seems that many of us are shocked by the supporters of this industry. I certainly am. Taking advantage of those least able to recover seems reprehensible at all levels. That there are defenders of such practices is about as ludicrous as the existence of people that don’t like pizza — though they also exist (I met one!).

  17. Pylon83 says:

    @ReidFleming:
    I don’t support the practice of people taking advantage of others per se. I support peoples and businesses ability to freely contract. It’s not the governments place to step in and dictate business practices like this.

  18. ReidFleming says:

    @Pylon83: I guess that’s where we differ in opinion. I absolutely believe that’s one of the government’s jobs.

  19. @Nakko:

    “Barely legal loan sharks”

    I love it. How true. How true.

  20. EarlNowak says:

    My local credit union offers payday loans. (They have a big sign out front advertising it.) Not sure what the fees are, but according to this article, average fees are $35 a year plus $3 a month. Googling “Credit union payday loan” shows hundreds of credit unions offering low-fee payday loans.

    So if the Credit Unions can offer payday loans at reasonable fees, why do payday lenders need to charge 300% APRs?

  21. EarlNowak says:

    @EarlNowak: Article is supposed to be [www.ncuf.coop] Not sure why it didn’t link.

  22. @Pylon83:

    Governments have an obligation to protect and serve. (Sounds like a police motto) Protecting us from harm, whether bad food products or dangerous banking & lending practices is well within the releam of good business.

    I am disappointed in Ohio for not screwing down all the potential sewer caps that will allow this slime to continue to flow.

  23. The free market zealots that support the payday lenders right to operate are the same people behind Reaganomics and a trickle down economy.

    Payday lenders hurt people much more than they help. Yes, in some instances there is a hypothetical single mother with bad credit whose car broke down and she needs a loan which she will immediately be able to repay at the next paycheck. But in most cases people who patronize payday lenders are at or near the poverty line and desperate, they won’t be able to repay the loan and it will quickly accumulate and cause more problems for them.

    It sucks that the government has to regulate to protect people from themselves but in most cases people caught up in the cycle of payday lending will soon be destined for government aid, so better they receive it before becoming thousands of dollars in debt in high interest loans.

  24. GoBobbyGo says:

    @Pylon83: I don’t support the practice of people taking advantage of others per se. I support peoples and businesses ability to freely contract. It’s not the governments place to step in and dictate business practices like this.

    Should they be allowed to sell crack too?

  25. howie_in_az says:

    @EarlNowak: Because they’re completely unsecured loans to people in the subprime credit section? Because tons of people end up defaulting on the loans and they have to recoup their money from somewhere?

    I know I’ve heard this before, wherein people with little/no credit get a loan with a high interest rate and default/get behind on it, then Good Government comes in and tries to save the day in one way or another.

    Hrm, where have I heard this before?

  26. deadspork says:

    There’s a reason people with bad credit have bad credit. They WILL default on the loans, and they WILL get that APR hike and get screwed by these people.

    Of course I realise there are some people that have shit credit due to divorce or whatever, but for the majority of people this holds true. It is those people these companies are preying on, and depending on a person’s despair and circumstances for profit.

    I don’t care if it’s illegal or not, it’s certainly not right.

  27. dragonfire81 says:

    Out of curiosity,what’s to stop the scummy lenders from just writing a bunch of fake signatures on the petiton?

  28. utensil42 says:

    @Pylon83: There was a story here a couple weeks ago about a middle-aged man who entered into a contract with a woman allowing him to sleep with her two teen-aged daughters in exchange for money. Should the government not have gotten involved in their right to freely enter contracts?

  29. brent_r says:

    I saw one of these bullshit commercials the other day.

    A guy dressed up to look like some wholesome farmer talks about how the government is taking away peoples rights, and goes on about the poor guy who can’t fix his truck because the mean old gub’mnt won’t allow him to get any money. And then tells people to support their proposition.

    They don’t even mention that it’s about payday lending.

  30. Jon Parker says:

    @laserjobs: Payday lenders would not exist if there was not a demand. Ohio putting them out of business is anti-capitalistic and anti-American.

    Child pornography would not exist if there was not a demand. The government putting it out of business is anti-capitalistic and anti-American.

  31. ShabazOSU says:

    @brent_r:
    Haha, yeah, I was going to say the same thing, the commercials are a crime to anyone with an ounce of common sense.

  32. Single mother auto repair, indeed… The people who take out payday loans live pay check to paycheck with no savings. My best friend took out one not to long ago to pay for car repairs. Because this slated his next paycheck for the payment of the loan (which is could not afford to give up entirely) he was in a bind and could only pay a portion of the loan back within the week. They added fees to extend the payment terms. Another week unable to pay it off in full… more fees… and so on and so on. It took him months to climb out of the hole they put him in. He would have been better off (by his own admission) saving up the money for the car repair and coming up with alternate ways to work. That $300 loan ended up costing $1000 over the course of it’s life and he received threats and was bullied during the entire process.

    These companies KNOW how little money their clientele has… they know because they make sure to only set up shop in poor neighborhoods. They know that people living hand to mouth can not repay their loans in such short periods of time and will rack up fees that they can’t afford. They know it will take them months of paying fees and extending deadlines for them to catch up. They bank on it. It is predatory and wrong. And I’m glad they are gone.

    You can spout capitalism and free market all you want but there is a reason these laws are in place. History has proved that these types of practices are bad for the overall economy and must be pruned away like dead and rotted branches.

  33. balthisar says:

    Don’t petition signers have to be registered voters? I don’t want to presume too much, but what are the chances that homeless people are even registered to vote?

  34. godlyfrog says:

    @laserjobs: You’ve got it backwards, I think. Removing these payday loan places is not going to raise our taxes. The people that patronize these businesses are already in need of help, whether it’s today or two years from now. The difference is that in two years time they will have done considerable damage to other businesses by not paying other bills that need to be paid in order to pay back the payday loans. The people that get into trouble due to these rates are the same ones that end up declaring bankruptcy, which contributes to lost income at other legitimate businesses.

    Personally, I don’t use payday loan stores, but they should charge fees up front with a low interest rate after the fact instead of just charging interest. That way, they still make their money off the people that need an emergency loan without putting people into the poorhouse through exorbitant rates.

  35. Hawk07 says:

    Isn’t the consumer ultimately the one who should make the decision and NOT the government?

    Why is big government always the answer to all of our problems? Keep in mind, this is the same government that some want to cover all of our healthcare needs. After bankrupting social security, it’s just further proof the government screws up anything it gets its hands on.

  36. emilymarion333 says:

    I do have to admit this – I have gotten a payday loan a few times. In CA the max you can get is $255 and the fees are really high – but I have been in a bind a few times. When I have done it I made sure I had enough money to pay next payday so I could be done with the loan ASAP.

  37. PaydayConsumer says:

    The payday lobby has been spending big money trying to dupe voters into thinking they need 391% interest. They spent $8.7 million on a similar initiative in Arizona and $20 million in Virginia to buy higher interest rates. Now they are spending about $100,000 a day to try to convince voters to sign their petitions. If they think people really want 391% interest, they should be willing to let voters have the facts.

    [www.yesonissue5.org]

  38. newfenoix says:

    @Nakko: Very true. They are the true scum of the earth.

  39. newfenoix says:

    @EarlNowak: Because they are crooks.

  40. penarestel says:

    @brent_r: Silly farmers.

    Have you seen the one with the mother and her two sons?

  41. Optimistic Prime says:

    They’ve been running ads on TV here in Ohio for a month. Unfortunately they seem very effective on people who aren’t educated in Payday scams.

  42. DH405 says:

    I totally see how someone could support these payday loan organizations’ right to continue operating on the basis of “Not the government’s business.” They have a contract that their clients sign, and the people going there DO make that choice. As a fan of small government, the idea of Uncle Sam stepping in and saying that people can’t enter into such an agreement bugs me.

    However, these people ARE scum. I think that they should be put out of business, but not by government action.

    I don’t know the answer to the problem, but more laws being put on the books is hardly ever a good solution.

  43. varro says:

    @Pylon83: If a lender’s services are truly needed in those situations, they can probably make a ton of money lending it at 28% (Ohio’s cap rate) or 36% (Oregon’s cap).

    No, the payday lenders are a bunch of greedy fuckers who consider desperate people ripe for the plucking. They make B of A blanch with their chutzpah.

  44. varro says:

    @mechfluff: If it’s South Carolina, it’s Advance America territory – I send so many notices to their HQ in my bankruptcy practice.

    One of the happiest days recently is seeing Advance America shutter its office near my house after Oregon capped the payday loan interest rates at 36%.

  45. Whiskey Tango Foxtrot says:

    Seems to me like somebody needs to get some advertisements out there to educate those who don’t know any better about the payday loan industry’s real goals, and the “almost 400%” APR.

  46. JollyJumjuck says:

    What strikes me funny about the “free market” and “capitalist” apologists in this scenario:

    They say it’s not the government’s job to help out people when they make “bad decisions” by taking out usurious loans, because these people “ought to know better.”

    So let me ask you this: if one of these payday loan companies was broken into and the employees held at gunpoint and robbed, would you also say it’s not the government’s job to provide police protection to protect the employees and track down the criminals? By your logic, I would blame the loan company for not investing in better privatized security! You can’t yell “free market, no government intervention” and then cry for the protection of the law (government) when things go sideways for you, unless you want to be branded a hypocrite.

    And before you say, “Well, the business pays taxes!” Yes, and so do individuals.

  47. My keyboard has a typo key says:

    I was happy to see a lot of these stores shut down. Right after the law went into effect.I think I only know of one left and it is part of a check cashing service. The rest are gone.

    They used to be everywhere in the poor(er) side of the metro.

  48. chefdkb175 says:

    @JollyJumjuck: Apples and kumquats. People enter into these contracts. They have made a (bad IMHO) choice. No one I am aware of enters into a legally binding contract to be robbed at gunpoint.

  49. quail says:

    @laserjobs: Drugs and prostitution are capitalistic entities and yet we as a society feel that they should not be allowed.

    These payday loan places prey on the most economically vulnerable. Consumerist reported on a study some time back ([consumerist.com]) that spoke about the death cycle created by taking a pay day loan companies. Check out [www.predatorylendingassociation.com]

    If the law forces them to shut down, then good riddance!!

  50. My keyboard has a typo key says:

    @quail: The law didn’t force them to shut down. The way they did business made it harder for them to operate. So most of them just vanished.I guess if they can’t operate with massive interest rates. They seen no legitimate need to keep open.
    Serious, most of them are gone here in Ohio. So the law was very effective in ridding Ohioans of this shady thing.The lenders who were legit. Are left operating and never even see the impact. Just more for them.

  51. @Pylon83: Are you then in favor of people being allowed to sell their children? It’s simply a market exercise redistributing children from people who have a surplus to people who need them. And believe you me, an AWFUL lot of people want to engage in child-selling. When I worked at a newspaper, we used to get classified ads ALL THE TIME from people attempting to illegally purchase children.

    Hell, slavery’s just an economic transaction … and having just spent a day at the new Lincoln Museum in Springfield (which was awesome!), I can tell you that “free market, feds shouldn’t interfere” was a major argument to keep slavery intact. “If the free market doesn’t want slavery, slavery will go away on its own,” they said. “People will make other choices.” Except the enslaved ones, one presumes.

  52. alstein says:

    @laserjobs:

    You can say the same about meth dealers and organized crime.

  53. Pylon83 says:

    @Eyebrows McGee:
    Obviously I don’t believe the free market should be taken that far. I do believe prostitution should be legal, licensed and taxed. However, those that take my statements to the extreme (Selling children or selling sex with children) are just ridiculous. For one, the idea of individual liberty overrides any freedom of contract ideals I may hold. People should be able to make decisions for themselves, and the governments places is simply to make sure that those decisions don’t affect other people adversely. Selling your child or another person clearly adversely affects the child’s or that person’s individual liberty. However, anything short of that should be allowed, subject to a very few overriding exceptions (illegal drugs, food subject to FDA requirements, etc.). I simply don’t feel that payday loans are on the same level as illegal drugs and possibly tainted food as to require government regulation. There are obviously limits to a free market, but payday loans most certainly fall well within those limits.

  54. doctor_cos wants you to remain calm says:

    @laserjobs: “…putting them out of business for some political reason…” What political reason would that be? Where is your evidence?
    The “Banking Industry”?? Why would they want to do that? If this was a real honest way to do business, banks would offer these same kind of loans at the same kind of interest rates and CLEAN UP.

    @Pylon83: “The government isn’t supposed to be a babysitter to protect people from themselves.”
    So we can get rid of drug and seatbelt laws right now. And disband the TSA. And Homeland Security. etc. etc.

  55. mechfluff says:

    @brent_r: I found the farmer ad.

    Oh no, what will that poor farmer do if he can’t fix a belt on his truck for 391% interest?

  56. Pylon83 says:

    @doctor_cos:
    You miss my point. I said protect people from THEMSELVES, not from others (in reference to your TSA and Homeland Security post). I am not a fan of seatbelt laws either, as it’s a program simply to protect people from themselves. Don’t want to wear the seatbelt? Who cares, it doesn’t affect anyone else (directly at least). Drug laws are another story. I’m willing to relent and accept drugs laws based mostly on the attempt to avoid the dangerous environment that drugs tend to create (General crime, racketeering, etc.).

  57. stinerman says:

    @Pylon83:

    What did people do before there were payday loans?

  58. stinerman says:

    @mechfluff:

    Yeah, there’s another one featuring a “single mom” who says something to the effect of “Oh noes! What if junior gets sick before payday?”

    They’re all over Ohio TV right now. I hope the pro-side starts up some ads soon before everyone only gets the anti-side position.

  59. Pithlit says:

    @JollyJumjuck: Really. They would have our government dismantled and have our country reduced to thirdworld status in short order. It’s pretty scary.

  60. xthexlanternx says:

    The 391% interest is not a valid argument. If it takes you a year to pay it off, then you shouldn’t have gotten the loan in the first place. I know friends and people in my extended family who have used payday lenders responsibly for emergency expenses. This legislation will put most (if not all) of them out of business. It is up to the individual to understand whether or not they can afford it, not the government.

  61. TouchMyMonkey says:

    @laserjobs: Crack dealers would not exist if there was not a demand. Ohio putting them out of business is anti-capitalistic and anti-American.

    FIFY

  62. TouchMyMonkey says:

    @Pylon83: “The government isn’t supposed to be a babysitter to protect people from themselves.”

    So if I own a shopping mall, and you fall three stories from the food court to Filine’s Basement and end up in a body cast because I didn’t inspect/fix the railing, you wouldn’t sue me? I mean, you should have been looking where you were going, right?

  63. Pylon83 says:

    @HurtsSoGood:
    Well, that’s not really protecting a person from themselves now is it? It’s protecting a person from another person’s negligence. Further, me suing you has absolutely nothing to do with government regulation. A more appropriate comment would have been “The Government shouldn’t fine me for having a railing that isn’t up to code?”.

  64. My keyboard has a typo key says:

    @xthexlanternx: It must be something in Ohio that got the attention from all the complaints and what not.Which might not be the case in other states. Ohio seen an issue, and corrected it.

  65. morganlh85 says:

    I remember when petitioners pulled this stunt a few years ago in Michigan…we were told their petition was to raise the state minimum wage. Turned out it was a petition to ban affirmative action, which of course passed even after a complaint was raised about petitioners lying to get the bill up for vote in the first place. Now I just don’t sign petitions.

  66. MickeyMoo says:

    @Pylon83:

    Pylon – your arguments pre-suppose that the payday clients are in a position to know better. These aren’t people who went to college, graduated, and decided “Hey, I think it’d be super cool to be poor and live paycheck to paycheck”

    We’re talking about an industry designed to prey upon a specific segment of society – people who SHOULD know better, but don’t. That’s why we have social safety nets in this country. Would you argue that the car dealer that kept selling new cars to a man with dementia (old consumerist article) should be allowed to take advantage of someone with diminished capacity?

    Investors are allowed to buy stock on margin (to make INFORMED decisions that could be potentially ruinous) precisely because they are informed decisions.

    But to each his own – that’s what is wonderful about this country, everyone is entitled to an opinion.

  67. Paxtez says:

    Yes payday loans suck, and it sucks how they use small print and lawyer speak to get people to use the service. But it is a needed service, people who use these know that there are fees attached but they need to for whatever reason. Car, food, medical bills, crack. By forcing the companies to a max of 29% APR, they are driving them all out of business.

    $500 x 29% = $145
    $145 / 12 (assuming a month to pay back?) = $12.08. Is not enough revenue to pay for overhead, not to mention labor.

    What will the people who need these do when they all close down? Go to real loan sharks?

  68. Consumerist-Moderator-Roz says:

    @williehorton: If you believe someone’s trolling, email me at moderator@consumerist.com. Posting that other users are trolls is just name-calling and frankly does little other than to be inflammatory and make the comments even more off topic.

  69. Optimistic Prime says:

    @stinerman: Before payday loans people did without. Car breaks down, you walked, rode the bus, or hitched a ride. Someone gets ill, you suffered, and cut unnecessary expenses. If you cut your cable and cell phone bills, you’d have a couple hundred bucks a month right there. You downsize, get rid of the Lexus and buy a Chevy. There are plenty of things to do without going to a loan shark.

  70. edrebber says:

    When the payday loan stores are forced out of business, organized crime will step in to fill the need. We will need more police to arrest the new payday loan criminals. Then we can add more inmates to our already overcrowded prisons.

  71. twiddling_my_thumbs says:

    Those who keep saying how much Ohio needs these payday loan places.

    Before this bill went into effect. They were all over in Cleveland. In some cases. Less than blocks apart. Now, they are further between. Not all of them mysteriously folded overnight.

    The load places that are not out to prey on Ohioans, are still left just as they have been before the bill went into effect.

    Limit to 4 loans a year. How is that hurting the good folks of Ohio? Anyone forget the bill addresses the gap of the crooks folding up the table and moving on?

    If a person is getting loan after load to cover the loan. There seems to be an issue.A nice sane limit on interest is a great thing. If you think over 100% interest is a good thing. I wonder how much your will to take loans out for.

    The bill did not stop anyone from getting advance loans. It just stopped a certain type of practice. There is still 0payday loans. Just much less interest attached to them.

  72. LeoSolaris says:

    Personally I dislike credit in general. I know it is a part of how our world works, but I still do not like it. Personally, I wish the Government had left the old “anti-loansharking” laws alone. Ya know, the ones that banned lending money with an interest rate.

    C’est la vie.

  73. @Pylon83: They do it all the time. Ever hear of RICO laws?

  74. steveliv says:

    @Paxtez: the math isn’t that simple, interest is compounded. you can’t just multiply the borrowed amount by the percentage, it doesn’t work that way on a mortgage, and it doesn’t work that way on a loan. thats why credit card debt can get so out of hand.

  75. uncoveror says:

    At least one state has closed the door on legalized loan sharking, and organized crime doesn’t like it! This ballot initiative needs to go to hell, and all the other 49 states need to follow Ohio’s lead. They legalized the numbers racket and call it “lotto”. They legalized loan sharking and called it “payday loans”. What is next if we do not draw a line in the sand? Legalizing hit men and calling it “personnel liquidations”?

  76. MrEvil says:

    I’m also of the thinking how these free marketers can keep apologizing for a group of businesses that try their damndest to keep people in their trap. They also routinely try to conceal the truth with confusing language RESEMBLING English.

    The reason we ban child pornography and prostitution is to protect women and children from exploitation. It’s also part of the reason we fine those that employ illegal immigrants. Exploiting is EXACTLY what these scumbag payday lenders are doing. They are exploiting those that have no other choice and no other option.

  77. mechfluff says:

    @stinerman: Yeah, I’ve heard of the “single mom” ad. I’d like to see it. If anyone can find it, please post.

  78. Cthulhus-minion says:

    I am not sure how it works in Ohio but here you write out a post-dated check to the lender. Dont make the payment, they try to cash the check, in which case, if the amount is over $100, you have just commited felony passing bad checks (the felony amount was set in 1969 and hasnt been adjusted). And our local DA loves bad check prosecutions. At least with a normal loan you dont go to prison for defaulting on it.

  79. My keyboard has a typo key says:

    How can anyone support this crap…

    [www.wcpn.org]

  80. zibby says:

    These poor people have nothing to lose and money for Thunderbird to gain. I back ‘em – sign away and Godspeed.

  81. harvey_birdman_attorney_at_law says:

    Of course these companies are predatory, of course they are scum. But if one finds oneself in the position of having poor credit and no family for assistance, what can be done? I used a payday lender once – I was just starting a new job and was maxed on credit cards, and had no cash. My car broke down friday and I had to start work monday. The payday company had the money in my account saturday, I got the car fixed, and I showed up to work Monday. I paid off the loan as soon as possible. I wasn’t happy about paying the ridiculous interest rate, but I had no other choice. If these companies were legislated out of business I would not have had the job and might have been evicted later that month.

    Yeah, these companies are scum. But that doesn’t mean we should get rid of them.

  82. dewsipper says:

    @Cthulhus-minion: In my area of Ohio, if the check is under $200, the police will do absolutely nothing about it. They tell you that point blank. The officer I spoke with said that if its under $500, it might get looked into if they are having a really, really slow day. He said to file in small claims court and good luck. Oh, and don’t call the person more than once, or you’re just harrassing them.

  83. Mysterry says:

    Wow … some of the comments here are just frightening.

  84. ELC says:

    Sounds like Democrats at election time: “are turning to lies and deceit…We won’t feign surprise that [Democrats] are resorting to underhanded tactics. Usury laws, election laws, ethics; it’s all the same crock of unreasonable bullshit to them.”

  85. irv says:

    There are incredible ads on TV in Ohio for this issue by a group with a name that no one could refuse: Ohioans for Financial Freedom. In one, a mother in her kitchen laments that “the politicians” are “at it again… trying to take away my financial choices.” Another shows a farmer-type dude next to a Chevy Silverado and a silo. It’s pretty amateurish but they might be effective. It reminds me of the Smoke Less Ohio campaign than ran at the same time as the Smoke Free Ohio campaign.

    Anyway, if you’re tricked into signing the petition, you can get your name removed. More info: [www.cleveland.com]

  86. 23221 says:

    “When the payday loan stores are forced out of business, organized crime will step in to fill the need.”

    Hilarious.

    In other words, Mafia-style lending practices are only bad when it’s the Mafia that’s doing the lending. When it’s a government-supported institution doing it, that’s just A-OK.

  87. PaydayConsumer says:

    The payday lenders are lying to Ohio voters in attempt to overturn one of the nation’s best consumer protection laws in November.

    Watch here:

    .

    The payday lobby is spending millions on TV to deceive voters and convince Ohioans that 391% amounts to financial freedom! 391% is not freedom, it’s a trap! Payday lenders need to acknowledge that their business is predicated on their ability to trap people in debt!

    Payday lending is a scourge on our families, our communities and our economy! VOTE YES ON OHIO ISSUE 5!

    [www.yesonissue5.org]