| Recently appearing on the airwaves are | | | | to repay their debt. The only proof of solvency |
| commercials funded by a group called Ohioans for | | | | that payday lenders require is proof of |
| Financial Freedom. In the television ad, a friendly | | | | employment and of a bank account. |
| farmer, supposedly representative of the | | | | A customer's credit rating, or true ability to repay, |
| "average" Joe, tells viewers that, after doing his | | | | has nothing to do with the transaction. People who |
| research, he has discovered that 6,000 Ohio jobs | | | | have good credit, have other, less expensive, |
| and the state's financial freedom are at stake. | | | | options for accessing money to pay for pickup |
| Farmer Joe explains that, if a belt breaks on his | | | | truck belts. |
| red Chevy truck, he can borrow $100 from his | | | | It's the folks who don't have those options - the |
| friendly neighborhood payday lender and pay back | | | | people least able to absorb such high interest |
| $115 when he gets his Friday paycheck. Joe then | | | | rates - that payday lenders service. Desperate |
| goes on to extol the virtues of payday lenders | | | | people, struggling to find ways to pay bills and |
| by linking the average citizen's option of borrowing | | | | meet the rising costs of gasoline and groceries, |
| money from a payday lender with financial | | | | make up the general clientele of payday lenders. |
| freedom and tries to impress upon his audience | | | | What Joe neglects to tell viewers is that since |
| that 6,000 "well-paying" jobs might be lost if Ohio | | | | many payday lenders allow their customers to |
| legislators, who are taking steps to regulate the | | | | "borrow" again within a day or two of paying their |
| industry, have their way. In other words, | | | | loan, a number of customers are doing just that. |
| according to Joe, the State of Ohio wants to strip | | | | Far too many customers of payday lenders get |
| its citizen's of their financial freedom by reigning in | | | | caught in a cycle of borrowing the same amount, |
| payday lenders. Joe wants us to stop the | | | | or a larger amount, every payday cycle just to |
| madness by signing one of the petitions that have | | | | break even. |
| been circulating to get legislation sponsored by | | | | It is because far too many people found |
| Ohioans for Financial Freedom on the November | | | | themselves unable to pay back their loans that |
| ballot. | | | | the State of Ohio had to step in and regulate the |
| What Joe doesn't tell us is that Tony Soprano and | | | | payday loan industry which has been enjoying |
| his mobster buddies would be hauled off to | | | | explosive growth at the detriment of those they |
| federal prison for doing what payday lenders | | | | profess to serve. Had their rates been reasonable |
| make a business out of. What payday lenders do | | | | and their practices not targeted those least able |
| is called usury in my neck of the Ohio woods and, | | | | to repay, Ohio legislators wouldn't have had to |
| like mob lending, it should be illegal. | | | | become involved. The only thing missing from |
| The plain facts are this:o Payday loans are | | | | payday lenders' repertoire is a big guy named |
| assigned at an annualized interest rate of 391 | | | | Vinnie threatening to break the fingers or |
| percent! Ohio lawmakers want that rate lowered | | | | kneecaps of non-paying customers. Of course, for |
| to a more manageable 28 percent.o Payday loan | | | | people who have no other options, even usury is |
| jobs are not "well-paying" positions. They are | | | | a feasible, if not altogether welcome, alternative. |
| low-paying jobs that won't keep a person afloat | | | | But, gee, Farmer Joe, why not tell the truth and |
| financially. So, those 6,000 jobs that Joe insists will | | | | give Ohioans all the information they need to |
| be lost are people living barely above the poverty | | | | decide if they'd rather borrow money at 391% or |
| line to begin with, not people living in the lap of | | | | at 28%? I for one believe that my financial |
| luxury as Joe would have us believe.o Payday | | | | freedom, and that of my fellow Ohioans, rests on |
| loans come in all sizes, with a $100 loan being on | | | | the failure of the payday loan industry, not the |
| the low end of the spectrum. Some payday loan | | | | perpetuation of it, and you'll not see this Ohioan's |
| lenders allow loans of up to $800.o Payday | | | | signature on Joe's petitions. |
| lenders prey on those who don't have the money | | | | |