Payday loan industry fights interest cap

Wednesday, June 18, 2008 2:38 PM

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The payday loan industry is backing a November referendum that would reverse the 28 percent cap on interest rates approved by the Ohio legislature.

The ballot initiative is the latest strategy in the industry's fight to keep payday loans from disappearing altogether as a result of capping interest rates, Stateline.org reported Wednesday.

Democratic presidential candidate Barack Obama and Republican counterpart John McCain both favor a 36 percent cap for payday loans.

But Industry spokesman Steve Schlein says polls show consumers don't like it when lawmakers take away their choices.

The Center for Responsible lending says 15 states and the District of Columbia have effectively banned payday lending by setting double-digit interest rate caps.

Payday business licenses in Oregon have dropped 73 percent since the state's 36 percent rate cap went into effect last year.

In Arkansas, payday outlets began shutting down after the attorney general issued cease-and-desist orders and filed lawsuits against 156 lenders.

(Source: UPI )


6/23/2008 10:15:11 AM Consumer by Frank Payday lenders should try to operate under the new law. It is hard to believe that the industry cannot be profitable at 28% interest. Lawmakers have made a bad choice more difficult - this is a good thing. Reply Rating: (0) (1)
11/12/2008 1:06:05 AM Re: Payday loan industry fights interest cap by Lisa P American people have spoken clearly. The winner was declared and the other candidate publicly concedes defeat. Questions still remained. With all the issues and economic crisis that the United States is going through right now.Would the president-elect Barack Obama make it or not? Election Day is finally over, and we now know who our next President of United States will be. Hopefully, America has made wise decisions. I hope the American people really thought about the issues in play before casting their vote on November 4th. It’s sad that the reality of how much people think about their political choices is less than studied. Some of us put more thought into whether to take out a payday advance than what the issues are. Listen to this brief audio snippet for instance. It‘s a recent episode of “The Howard Stern Show,” posted courtesy of BPM Deejays of Pittsburgh, Pennsylvania. Roving Reporter Sal roamed the streets of Harlem, New York to get the opinions of men and women, to see whether they supported Barack Obama or John McCain for President. In actual fact, this was to determine whether African-Americans would automatically vote for Barack Obama simply because he’s black. Sal reverses the candidates’ positions on issues like the pro-life argument, stem cell research, the war in Iraq and who Sarah Palin is. Shockingly, many of the responces were brainless. Sal gets people to admit that they support Obama despite what policies he represented. This discussion has exposed something truly depressing. The truth is that many people are uninformed as to the issues. Many people try to play a part of popular opinions. I just hope that during the elections, you really thought about it. Reply Rating: (0) (0)
6/23/2008 10:15:11 AM Consumer by Frank Payday lenders should try to operate under the new law. It is hard to believe that the industry cannot be profitable at 28% interest. Lawmakers have made a bad choice more difficult - this is a good thing. Reply Rating: (0) (0)

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