Have you ever dealt with the cash advance industry? Many people do not like to deal with this industry because they feel as though there is something wrong with how it works. People have begun to change how they deal with payday loans. States are also starting to do something different as well. These states really want to find new ways to make sure that lenders are giving people a fair shot and that it is not corrupt. Ohio is a state that is trying to do this. Let's take a look at what Ohio is doing. This might end up affecting your state at some point, so make sure that you are paying attention.
What the Law States
In May the General Assembly passed a law that will drastically cut the annual interest rate that is permitted on short term lending services. The law cuts the rate down to 28% from a rate that could go as high as 391%. Like any fight this has gotten expensive and the Ohio payday lenders have shelled out hundreds of thousands of dollars to launch a statewide campaign to stop this law. Both sides have really been pushing to get the result that they want. This is a process that is going to have a resolution passed very soon.
Deadlines Must Be Met
This is not something that will pass without a few deadlines having to be met. The first date to remember is August 14th. This is when short-term lenders will go before the Ohio Ballot Board. They want to do this to make sure that they can get wording in this bill that will make sure the result they get is the one that the lenders want. The result they need is 241, 365 signatures from Ohio voters. If these signatures are not received by August 31st then the law will be passed on the very next day. On November 4th the issue of borrowing will be raised on a national level.
What is it Looking Like?
Well, obviously the lenders are fighting long and hard to make sure that this does not go through. You would assume that anti-payday loan organizations would be fighting hard to pass this. It turns out that the anti groups are not as concerned. They feel as though this is not the defining time of the issue and they are working to make sure that this bill can be worded in the best way possible. They do not want any bad confusion to take place with the voters. This is why they are fighting for wording, but are not as concerned about a potential NO vote.