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Home > Blogs > Ohio politics > Archives > 2008 > August > 13 > Entry
Payday lenders pay big bucks for TV ads
Wanna know why it seems that every time you turn on the TV you see either swimmer Michael Phelps or that farmer guy in the payday lending commercial?
Well, Phelps is the newly crowned “Greatest Olympian Ever.” The payday lending industry, though, is shelling out nearly $100,000 a day to get their commercial on the airwaves in Ohio. They’re pushing to get 241,365 signatures from voters by Aug. 31 to block one of the toughest anti-payday lending laws in the nation from taking effect.
The Ohio Coalition for Responsible Lending, which lobbied for the new law, said the pay lending industry’s campaign committee spent $382,127 on TV ads in Ohio between Aug. 8 and Aug. 12. “That’s nearly $100,000 a day pushing a toxic loan product under the guise of personal financial freedom,” coalition spokeswoman Suzanne Gravette Acker said.
The coalition alleged this week that the payday lenders are using misinformation and illegal tactics to trick people into signing the petition, including telling Ohioans that it will lower the interest rates on payday loans. The law slashes permitted annual interest rates to 28 percent, down from 391 percent.
The payday lenders said if their petition circulators are misbehaving, they want to know about it so they can take action.
Anyone who signed the petition but wishes to remove their names can call John Campbell at 614-477-5042 or e-mail him at campayneteam@gmail.com. Campbell represents the payday lenders.
The coalition is urging people to ask for proof that their names were removed from the petition.
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Comments
By glenn
August 14, 2008 2:49 PM | Link to this
The movement to keep payday loans in Ohio should not be discredited by the actions of a few people who may be misinformed or should be dismissed from their jobs. Also, they are paid by the hour and not the signature, so they have little motivation to lie. As for the interest rate, the referendum allows BOTH laws to be in effect at the same time. The law that payday lenders currently operate under will remain in force, and the new loans product with the 36% cap will go effect. The great state of Ohio is offering banks and credit unions money at below market rates to offer these cheaper loans (now you know where your tax dollars go) so these institutions will have very significant competitive edge over payday lenders. If the 36% product can be offered at a profit the higher priced payday loans will vanish due to competition. So if the petitioner allegedly told someone the rate would be 5% they were close to being right. The new law with the 36% cap divided by 12 for a one month loan is 3%. Perhaps the petitioner simply wasn’t familiar with the math of the two laws. That’s a far cry from intentional deceit. The referendum lets the consumer decide which product they prefer in the marketplace, not the politicians. That’s the way it should be. Like the farmer in the commercial says - if you get a chance you sign the petition. Then in November vote for the referendum and let the people choose which product is best.By Liam
August 14, 2008 2:08 PM | Link to this
Although I do not condone the deception and misrepresentation by a few of the petition circulators, the media once again focuses on the poor judgment of one or two individuals who may be uninformed or self-motivated. I believe this issue should be heard and allowed to be voted on by the people of Ohio. In light of the Olympic games, the United States was found on the principle that everyone is entitled to be heard and the people will decide through democratic election what is best for them.By Liam
August 14, 2008 2:07 PM | Link to this
Although I do not condone the deception and misrepresentation by a few of the petition circulators, the media once again focuses on the poor judgment of one or two individuals who may be uninformed or self-motivated. I believe this issue should be heard and allowed to be voted on by the people of Ohio. In light of the Olympic games, the United States was found on the principle that everyone is entitled to be heard and the people will decide through democratic election what is best for them.By Greg
August 14, 2008 12:25 PM | Link to this
The payday lenders are spending all this money trying to get voters to sign petitions and they aren’t being honest about what it means to sign! Why should we trust the payday lobby? If people want 391% interest, then tell them that’s what they are going to get! Just be honest about it and perhaps you can regain some credibility.By Greg
August 14, 2008 12:24 PM | Link to this
The payday lenders are spending all this money trying to get voters to sign petitions and they aren’t being honest about what it means to sign! Why should we trust the payday lobby? If people want 391% interest, then tell them that’s what they are going to get! Just be honest about it and perhaps you can regain some credibility.By GR
August 13, 2008 8:00 PM | Link to this
Its sad that personal responsibility isn’t the best answer because only those who could truely afford to gamble would, and only those who could reasonably pay back these loans would get them. Heck, that also means, we all would live within our means, never have stuff we don’t need. What an ideal world. Unfortunately, we aren’t always as responsible as we should be, and shouldn’t get caught in a trap of usury interest rates.By observer
August 13, 2008 7:36 PM | Link to this
I have not yet been asked to sign a petition, but would based on personal experience. I don’t run around getting these loans all the time, but having the option to get one is something that should be my choice, not Gov. Strickland’s, since he won’t need one in the near future. I realize that the interest rate is very high, but I also realize that a $36 fee for a bounced check if my timing is a bit off is high as well. It should be my choice.By mwm
August 13, 2008 7:34 PM | Link to this
Ohio should legalize gambling and prostitution also; then, tax it. Why not?By painfultruth
August 13, 2008 7:16 PM | Link to this
YES! Let’s do EVERYTHING we can to run MORE BUSINESSES out of Ohio! If the payday loan companies cannot get an adequate return, they will simply close. PERSONAL RESPONSIBILITY, people; if you can’t afford to pay the money back on time, DON’T BORROW IT IN THE FIRST PLACE. Good, I hope all these places close, and when someone needs a short-term loan they won’t be able to find one anywhere. This isn’t “predatory lending”, which is a fantasy of the press, nor a method to “entrap” people. One is either responsible or not. The people that don’t pay back the sum under the terms of the agreement are simply stupid losers that aren’t even smart enough to take care of themselves. Just like the housing market where too many people with not enough money bit off way more than they could chew, and now the government has to bail them out! Go ahead, and put 6,000 more Ohioans out of work! Bunch of “nanny state” idiots!By kimba
August 13, 2008 6:30 PM | Link to this
I was ask to sign and told rates would go down to 5%. I’m glad I did not sign but the reason I didn’t was because it sounded fishy to me.