The Payday Lenders in Ohio

Ohio is being swamped by the "payday" lenders. These quick cash or payday advance places started to appear during the administration of former governor, Bob Taft (Republican). The directors/owners of the payday companies have been major contributors to Taft and the Republican Party. Unfortunately, now Ohio's poor and disadvantaged are caught up in high interest rates and loans that can never be fully repaid. The Toledo Blade has an editorial about these payday lenders. Here are some excerpts:

YEARS ago, "loan sharks" were among the perennial targets of good-government movements everywhere. Now, Ohio is afflicted with a modern version of the old plague. It's called the payday lending industry, and it badly needs to be brought under state control.

You've probably seen the explosion of these establishments on the state's landscape. In barely more than a decade, they have mushroomed from 107 to more than 1,500, all of them existing to suck unsuspecting and poor customers into their web.

Fortunately, an Ohio legislator finally is trying to rein them in. State Sen. Ray Miller, of Columbus, wants to keep fewer people from falling into financial ruin. He recognizes that payday lenders are predatory creatures. They give their businesses catchy names like "Easy Money" and "Cashmart."

..... There's a big problem, though. Senator Miller is a Democrat. So in the Republican-controlled state House, his recommendations may be ignored. That would be disturbing.

Jamie Frauenberg, president of the lenders' trade group, the Ohio Association of Financial Service Centers, says more oversight is not necessary because customers don't complain and the need won't disappear. He's right to the extent that they don't complain because they feel helpless.

If there was ever a place for governmental oversight to protect citizens from predators, this is it.

Thank you, State Sen. Ray Miller, for trying to get these blood-sucking payday companies under control. I hope that the Republicans, like Jon Husted and Kevin DeWine are listening and ready to act on Miller's proposals.