Rogers approved the summary of the portion of the law that would appear as a referendum on the November ballot, if the petition drive is successful.
At issue is a provision of the new law that caps annual interest rates at 28 percent, down from 391 percent.
"In a nutshell, it (the proposed referendum) repeals Section 3 of House Bill 545, but still allows for short-term loans at 28 percent," said Kim Norris of the Reject House Bill 545 Committee. "So, it's the best of both worlds."
Yolanda Walker, at corporate headquarters of Cashland, which has two stores in Scioto County - Portsmouth and Wheelersburg - said the 391 percent figure is somewhat misleading.
"Because we are a lending institution, we have to disclose our interest in Annual Percentage Rates - which would be 391 percent - but we aren't permitted to make one year loans; so, it is simply $15 for borrowing $100," Walker said. "Loans are for a week or two weeks, depending on how you are paid. For example, if you are paid weekly, your loan is due on your weekly pay date."
Norris said the referendum would allow consumers to choose the type of lending option they want to borrow under.
Norris said Rogers rejected the organization's first two proposals - saying the first was too short and the second, too long.
"It felt like the three little bears," Norris said. "But she did accept our third proposal."
"Earlier this week, we were going back and forth with the attorney general's ability to approve summary language," Norris said. "The argument we made to the court, was a constitutional argument. You and I have the right under the constitution in Ohio to choose if an issue makes it on the ballot or not."
Norris also talked about the process and being at odds with Rogers.
"We have to go out and get signatures, but an attorney general cannot impede the process. That argument is still under way," she said. "Yesterday, she rejected that one but approved this other summary, so we're moving ahead with our summary that she approved."
Norris said, in the meantime, her group still is arguing the process of allowing an attorney general to delay the process, and also said she believes the actions by the attorney general are, "a constitutional violation."
"Like or don't like the issue, you are not allowed to impede the process, keeping the people from repealing the law," she said.
Rogers said if the one section were repealed, leaving the remainder of the new law's requirements in place, a situation would be created that is "inherently confusing." But she said her task under Ohio law was to rule on the truthfulness and fairness of the proposed summary, and not comment on the merit of the proposed referendum.
The payday loans industry and supporters of the repeal must collect 241,365 valid voter signatures by Aug. 31, to get the referendum on the ballot.
Some payday lending businesses across the state argue the law change - as it stands and was signed by Strickland - will force them to close offices and lay off workers
Walker said Cashland is watching the ongoing process and will weigh its options as to the operation of their stores depending on the outcome of the referendum.
Post a Comment
