At that Nehemiah Action Assembly, Senator Ray Miller pledged to introduce legislation in the state house to curb PayDay Lending. You may have seen recent articles in the Columbus Dispatch and elsewhere in which this issue and its abuses have been well documented. Though B.R.E.A.D. is mentioned, it is rarely given the credit for having moved this issue to the forefront.About that bipartisan support--that is apparently the reason Ohio House Minority Leader Joyce Beatty has been hesitant to support the legislation. From the Other Paper article I linked yesterday...
Several state lawmakers of both parties have agreed to take on the cause. While others surely have their reservations, Beatty is one of the only legislators to openly criticize the effort, brushing off the proposed reforms as shortsighted and politically motivated.I have a hard time understanding how a powerful Democrat in the Ohio House would want to delay implementing measures to protect our most vulnerable citizens from predatory lending practices for basically political reasons. Still, she did say I will not support any legislative agenda that I feel is solely for someone’s political gain, and has said that she is willing to hear from her constituents on this matter. Maybe even polite letters from people who are not her constituents, but are able to clearly express why this is not solely for someone's political gain.
The bill (I've been searching for a bill number and an official link, and will update if/when I find that) only proposes the same safeguards against predatory lending that military personnel are now granted via the Nelson Talent Amendment.
The proposed bill would cap interest rates on short-term loans at 36 percent. Currently, the rate on these loans can reach nearly 400 percent when calculated over a year. The bill also would call for financial incentives and tax credits for traditional lenders to encourage them to offer short-term, low-interest loans.So we're talking about reasonable limits on the interest rates that can be charged, not shutting these places down, as Rep. Beatty seems to suggest here:
House Democratic Leader Joyce Beatty, who represents some of the same citizens as Miller, said she has talked to people in line waiting to get payday loans.That quote is from an article that was published on July 23. Hopefully by this point, people have clarified to Representative Beatty that no one associated with this proposed bill is suggesting that payday lending establishments should be shut down Still, since she is in a position to either help or hurt the passage of a bill that could offer even some minimal protection to Ohio's most vulnerable citizens, I think it couldn't hurt to politely help see to it that she does understand what this is really about.
Update: In addition to Rep. Beatty, B.R.E.A.D. also has meetings scheduled with the following representatives.
Rep. Jim McGregor, District 20
Rep. Larry Wolpert, District 23
Rep. Tracy Herad, District 26
If you live in one of their districts, please consider writing to encourage their support of this bill.
Monday, September 10, 2007
Posted by Renee in Ohio at 6:16 PM