This is probably one of the more pressing issues on our ballot this time around, excepting the actual representative elections.Issue 5 is a vote to maintain reforms put into place by the Ohio Legislature to reduce the lending abilities by so-called payday lenders. Currently, payday lenders can charge up to 391% interest on these loands which, yes, over two weeks would only be $15 on a $100 loan. However, the cycle that is created for predominantly low-income persons just trying to make ends meet is destructive and does not help the current credit crisis. For my original post on the issue, go here.
I have friends stuck in this mess (as shown by the fun little cartoon below), and it's rough and it's difficult to get out of. Yea, there's an argument to be made that people should be responsible for their own money and their own financial decisions.
Not to be snarky, but we've seen where that has gotten us, haven't we?
Language of issue 5.
Arguments for it.
Yes on Issue 5 Campaign.
6 comments:
But, where do you get a short term loan without these guys ?
At least they won't break your legs if you don't pay.
I think some kind of compromise is needed.
No one is closing them down. They are asking them to be responsible corporate citizens.
unprofitable responsible corporate citizens maybe
I don't know about your friends, but, watching the news I thought, who would be dumb enough to borrow money at these rates. Then they started interviewing people who were caught in the cycle, and most of them weren't the sharpest crayons in the pack. It's sad people are taking advantage of someone without the faculties to make intelligent decisions.
Was that a dig, Schwarz?
I am voting YES on 5...hopefully in the long run this will help people be better off.. I am not the richest person, but I have never used these places other than a few times to cash a check and that was still a rip off, so even with the capped interest rates, they will still survive on check cashing, money orders, and bill pay services...and if a few of them shut down would it really be a bad thing?
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