Ohio Payday lending Reform
Please sign on for national small-dollar lending reform
January 4, 2019, 10:30 AM
Sign on to the FDIC Public Comment Letter On Small-Dollar Lending
It was an exciting 2018 with the passage of the Ohio Fairness in Lending Act that will be fully implemented this April.
However, payday lending reform remains a national issue with federal regulators considering rules that could increase responsible competition and further reduce the cost of borrowing in Ohio and across the country.
The Federal Deposition Insurance Corporation (FDIC) has recently solicited public comments. The Ohioans for Payday Loan Reform coalition is circulating this public comment letter and would appreciate your organization signing on in support.
The deadline to sign on is Monday, January 21st.
If you have any questions, please contact Nate Coffman at (614) 461-6392 ext. 207.
July 30, 2018, 4:27 PM
Moments ago, Governor John Kasich signed Sub HB 123, substantial payday lending reform, into Ohio law.
It achieves the three mainstays of safe small-dollar lending: lower prices, affordable payments and reasonable time to repay. It closes the exploited loophole while ensuring that borrowers will continue to have access to credit.
This bi-partisan bill was championed by Representatives Kyle Koehler (R - Springfield) and Mike Ashford (D - Toledo) who never wavered during this long and intense fight.
OCDCA was honored to work with such a dedicated coalition Ohioans for Payday Loan Reform and the Pew Charitable Trusts to bring about much needed reform. The roller coaster passage overcame obstacles in both the House and Senate. This was truly a team effort that demonstrates the power of people versus a well-financed payday lending industry with numerous lobbyists.
We would like to offer many thanks to all of the members and stakeholders that reached out to their state legislators, testified in committee, and helped gather signatures for the ballot issue. With Sub HB 123 becoming law, the ballot issue will not be moving forward.
OCDCA would also like to offer gratitude to all the legislators that supported reform including Speaker Ryan Smith, Senate President Larry Obhof, and Senate Finance Committee Chair Scott Oelslager.
This reform will help stop the debt traps and save Ohioans more than $75 million a year that can be invested back into our local communities.
Thank you for your advocacy!
July 24, 2018
Payday loan reform passes final hurdle in the legislature, bill awaits Gov. Kasich's signature
Coalition leaders applaud legislators for protecting Ohio consumers
Columbus - July 24, 2018 - Payday lending reform took a leap forward today as the Ohio House voted 60 to 24 to accept Senate changes to House Bill 123. The bill, also known as the Ohio Fairness in Lending Act, will now head to Gov. John Kasich’s office for final approval.
The statewide coalition Ohioans for Payday Loan Reform called on Gov. Kasich to sign the bill into law as soon as possible.
“It’s been almost a year and a half of a David versus Goliath battle to get payday reforms through the Ohio Legislature,’’ said Carl Ruby, a Springfield pastor who is one of the leaders of the coalition. “This is a major victory for Ohio consumers, and a victory for the volunteer members of our coalition who have devoted countless days to this effort. Many thanks to them, as well as bill co-sponsors Rep. Kyle Koehler and Mike Ashford.’’
Nate Coffman, another coalition leader, said it wasn’t easy to get reform done. “I give a lot of credit to the House and Senate members who believed that credit could help borrowers who are struggling, but not at the unrelenting, high-cost terms that exist in Ohio now,’’ said Coffman, who is executive director of the Ohio CDC Association. “This bill is fair and reasonable. Payday lenders can still make a profit and Ohioans will still have widespread access to loans with affordable payments.’’
The bill has the following consumer protections:
Adequate time to repay and affordable payments: Gives borrowers at least three months to repay or limits monthly payments on short-term loans to 6% of the borrower’s gross monthly income.
Reasonable prices: Authorizes pricing that aligns interests of lenders and borrowers, while maintaining widespread access to credit: 28% annual interest and a maximum monthly fee of 10% capped at $30.
Pathway out of debt: Requires equal payments of principal, interest and fees combined, plus a reasonable time to repay based on loan size and the borrower’s income.
Eliminates loopholes: Prevents lenders from using unintended statutes, such as the Credit Services Organization statute, to avoid consumer lending laws and protections.
“Now, instead of Ohio having the least regulated payday loans in the United States, Ohio is poised to be a model for other states across the country that allow small loans,’’ said Michal Marcus, another coalition leader who heads the HFLA of Northeast Ohio.
The bill will save Ohioans more than $75 million in excessive fees each year that can be invested back into local communities and businesses.
July 23, 2018
Tomorrow, the House is set to vote again on HB 123, The Fairness in Lending Act. The House will meet at 11 AM. It is expected to pass again to accept the Senate's changes. You can watch it live here tomorrow: http://www.ohiohouse.gov/live.
July 12, 2018
The success of sub HB 123 so far has garnered a lot of news media, but his one by Laura Hancock from Cleveland.com is one of the most comprehensive. Ohio Payday lending bill: Who wins and who loses?
July 10, 2018, 4:04 PM
Moments ago the Ohio Senate passed Sub HB 123, substantial payday lending reform, by a margin of 21-9. The coalition was able to reach a compromise with Senate leadership that maintained the core protections in HB 123 that will create fair prices, affordable payments, and a reasonable time to repay. The bill will save working Ohioans tens of millions of dollars a year and stop the endless cycle of debt traps that harm countless families.
OCDCA would like to offer gratitude and thanks to Senate President Larry Obhof, Senate Finance Committee Chair Scott Oelslager, and all that voted and stood up for what was right. Sub HB 123 will make Ohio a national model for reform.
This was truly a team effort with Ohioans for Payday Loan Reform and the myriad of partners including the Pew Charitable Trusts. We would also like to thank all of the members and stakeholders that reached out to their Senators, testified in committee, and helped gather signatures for the ballot issue. Thank you for your support and for stepping up to help enact real reform for hard-working Ohioans.
The bill now moves to the House of Representatives for likely concurrence (agreement with the Senate version) and then to the Governor for hopeful signature. Reform is near.
Update: June 28, 2018
The Senate Finance Committee has conducted five hearings on HB 123, the bipartisan payday lending reform bill that passed overwhelmingly in the House earlier this month. Going on summer break without a vote, we encourage everyone to continue calling their State Senators telling them to vote YES on HB 123 as written. While the language is not yet complete, Senator Huffman is working on a proposed amendment straight from the payday lender playbook that would gut the bill, We need to make our voices heard to ensure that that doesn't happen.
Read the press release from the Ohioans for Payday Loan Reform coalition.
Update: June 25, 2018
The Senate Finance Committee will hear testimony TODAY at 2:30 pm in the third hearing for HB 123. They will also meet tomorrow at 3:30 pm. Anyone that is able to attend these hearings to show support for HB 123 is encouraged to attend.
Whether you can attend or not, we still encourage everyone to call their Senators and Senate Leadership asking that HB 123 pass as written.
Thank you for your advocacy!
Don't Let the Senate Water-Down Payday Lending Reform
House Bill 123, meaningful payday lending reform, received sponsor testimony in the Senate Finance Committee yesterday and will have proponent testimony tomorrow. But it appears that an amendment is being drafted that would water down the bill.
We know payday lenders are speaking with, emailing, and calling Senate members in force and it is critical we counter that with robust outreach in the form of personal emails and calls from the coalition, you and your networks. These contacts matter!
Payday lenders out-called and emailed us when the bill was before the House, and we cannot let that happen again! Several members of the House referenced letters and calls they received, and we want the Senate to have much more saying VOTE YES to HB 123 AS WRITTEN.
Contact your Senator and Senate Leaders asking them to pass HB 123 as written now!
Here's who you can contact:
Your State Senator
Find out who your state senator is by going to legislature.ohio.gov. On the right hand side of the home page, go to the box "Find My Legislators.'' Many Senate members' pages have a link to their Twitter feed and Facebook page.
Senate President Larry Obhof
Sen. Gayle Manning
Sen. Randy Gardner
Sen. Matt Huffman
Hello, my name is _________. I am a constituent from ______________ and I strongly support HB 123 as written, the bipartisan payday loan reform bill that will save Ohioans more than $75 million each year. For too long, payday lenders have been charging Ohioans the highest rates in the country. The bill is a reasonable compromise that keeps credit available with simple safeguards that are proven to work. Don't water HB123 down to benefit payday lenders. Thank you for your time.
Want to do even more?
Tweet also to Senate party sites: @OhioSenateGOP and @OhioSenateDems.
Follow & re-tweet some of our coalition members' posts: @ohpaydayreform @OhioCDC and @NateTCoffman
Please share this e-news alert with your networks and ask them to help with this effort.
Check out the recent Dayton Daily News article that covers this story really well.
Read more about HB 123 and Ohioans for Payday Lending Reform.
Most importantly, please call and write to your Senator telling them to vote YES on HB 123 as written.
Thanks to all of you, we have momentum. Let's keep pushing and get this done!
Ohio House Passes Payday Loan Reform Bill; Moves on to Senate
June 7, 2018 - The Ohio House of Representatives today passed legislation that would lead to significant and long overdue reforms of the payday loan industry in Ohio.
House Bill 123 (HB 123) passed by a vote of 71-16 with bipartisan support.
Ohioans for Payday Loan Reform, a coalition of more than 100 business, faith, veteran and community leaders and borrowers from across the state, thanked the Ohio House and called for swift approval by the Ohio Senate.
"We want to thank the Ohio House for finally recognizing that there is a much safer way to make small dollar loans available for Ohioans," said Michal Marcus, Executive Director of the Hebrew Free Loan Association of Northeast Ohio and one of the payday loan reform coalition's leaders.
State Rep. Kyle Koehler, R-Springfield, a co-sponsor of the bipartisan bill with Rep. Mike Ashford, D-Toledo, thanked his colleagues for voting to pass these "much-needed reforms."
"Ohio families deserve access to safe and affordable credit, not loans that trap them in a cycle of high-cost debt. By passing this careful compromise, my colleagues have made a statement that we will fight for hard-working people who are struggling to make ends meet. I respectfully ask that leadership in the Ohio Senate now take up this well-thought out legislation for discussion and, ultimately, speedy approval."
Today, payday loans in Ohio can carry annual percentage rates of 500 percent or more, and unaffordable payments trap families in debt. The bill builds on reforms that were approved in 2008 by approximately two-thirds of Ohioans who cast ballots. It would cap interest rates on payday loans at 28% and allow a maximum monthly fee of $20, providing affordable payments for borrowers and reasonable profits for lenders. The balanced legislation that passed the House would save Ohioans more than $75 million annually while preserving access to credit for borrowers.
The Ohio CDC Association would like to thank all of the many members that contacted their representatives over the past month. Your calls, emails, and letters really made a difference. The coalition will need your help over the summer as the bill moves to the Senate.
Thank you for your advocacy,
Executive Director, Ohio CDC Association
Update: Thursday, June 7, 2018
Yesterday, the House undertook 11 rounds of voting to elect a new Speaker, Rep. Ryan Smith (R-Bidwell).
In light of the newly elected Speaker, the House is expected to vote on HB 123 today. It is the tenth bill on the agenda, and the House meets at 11 am, so we don't know exactly when the vote will be.
There is still time to call your Rep and encourage them to vote YES on HB 123.
Update: Wednesday, May 23, 2018
The vote to select a new Ohio House Speaker has been cancelled for this week. When the new speaker is selected and voted upon, we anticipate a vote on HB 123. Check back here for updates on the vote timeline.
Please continue to call or email your Reps urging them to vote YES on HB 123 when they do vote on it!
As Ohio House Fails to Move Payday Loan Reform Bill Forward, Ballot Issue Gains Certification from Attorney General
COLUMBUS, May 22, 2018 - The Ohio Attorney General’s office yesterday certified a petition for a constitutional amendment calling for the reform of the state’s payday loan industry.
The ballot initiative moves forward while House Bill 123 (HB 123), bi-partisan payday reform legislation that was introduced more than 14 months ago, hit yet another roadblock last week with cancellation of session after the bill was scheduled for a full House vote. This follows many months of delay by Oho House leaders, who long refused to let the bill move forward.
“Any reasonable person, after examining the facts, quickly concludes that Ohio’s payday loan industry is in dire need of reforms that will make it much fairer for the working men and women who use these financial products,” said Nate Coffman, of the Ohio CDC Association, one of four leaders of Ohioans for Payday Loan Reform who is pursuing the ballot initiative.
HB 123 stalled under the leadership of former House Speaker Cliff Rosenberger, who suddenly resigned in April amid reports that the FBI was reviewing some of his activities, including a trip that was partially paid for by payday lenders. The House – which cannot hold a session until they pick a successor to Rosenberger - has yet to name a new speaker.
“Payday lenders benefit from the delay caused by internal bickering over the speaker position, and Ohioans continue to suffer from the industry’s outrageous borrowing costs,” said Springfield Pastor Carl Ruby, another of the four pushing for the constitutional amendment. “Every day without reform costs Ohio residents more than $200,000 in excessive borrowing costs. Payday rates in other states are much lower than Ohio. HB 123 would solve this problem, but we can’t count on the legislature to act.”
The statewide coalition Ohioans for Payday Loan Reform continues to push for reform via the legislature. Both Ruby and Coffman said they would prefer reform that way as well, but the ballot initiative may be the only way to advance real reform.
HB 123 builds upon reforms outlined in a 2008 statewide referendum that Ohioans overwhelmingly approved at the ballot. It would cap interest rates on payday loans at 28% and allow a monthly fee up to $20. Payday loans in Ohio can carry annual percentage rates of 500 percent or more.
The payday loan industry ignored the vote of Ohioans in 2008 and instead slithered through a loophole that allows them to continue to charge their excessive borrowing rates. Members of Ohioans for Payday Loan Reform, a diverse statewide coalition of more than 100 individuals and organizations that support passage of HB 123, are assisting the ballot initiative.
Supporters of the ballot measure will have to collect another round of signatures – equal to at least 10 percent of the total number of votes cast in the gubernatorial election - in order to get the issue placed on the ballot in 2019.
Update: Wednesday, May 16, 2018
The full House session for today has been cancelled because the GOP Caucus has yet to reach consensus on a new speaker of the House. As soon as that issue is resolved and the full House session has been rescheduled with House Bill 123 on the agenda, we will post updates.
In the meantime, please continue to call or email your Reps urging them to vote YES on HB 123 when they do vote on it!
Payday Lenders Flooding the House with Misinformation
The payday lending industry today is flooding House members' offices with phone calls and emails spreading misinformation about HB 123, which they are set to vote on tomorrow.
Payday lenders are out-calling us!
HB 123 was introduced last year by Reps. Kyle Koehler (R) and Mike Ashford (D). It will close the loophole in Ohio's law that lenders have been operating under and it will NOT kill the payday lending industry in Ohio.
A very similar law has been in effect in Colorado for eight years where lenders remain profitable and borrowers have widespread access to credit with fair terms.
We need you to call or email the following House members today and tell them that you support the original bill and that you are asking them to vote yes when it comes to the full House vote tomorrow.
Here's a simple sample of what you can say:
My name is ____ from ____. I am calling to urge you to vote YES on bipartisan payday loan reform, HB 123, to protect consumers and reject the influence of predatory payday lenders. Can we count on your support?
Below are some reps that really need to hear from you:
Antani, Niraj (R-Miamisburg) (614) 466-6504 firstname.lastname@example.org
Barnes, John (D-Cleveland) (614) 466-1408 email@example.com
Brinkman, Tom (R-Cincinnati) (614) 644-6886 firstname.lastname@example.org
Craig, Hearcel (D-Columbus) (614) 466-8010 email@example.com
Dever, Jonathan (R-Cincinnati) (614) 466-8120 firstname.lastname@example.org
DeVitis, Tony (R-Green) (614) 466-1790 email@example.com
Edwards, Jay (R-Nelsonville) (614) 466-2158 firstname.lastname@example.org
Hagan, Christina (R-Alliance) (614) 466-9078 email@example.com
Hood, Ron (R-Ashville) (614) 466-1464 firstname.lastname@example.org
Huffman, Steve (R-Tipp City) (614) 466-8114 email@example.com
Johnson, Terry (R-McDermott) (614) 466-2124 firstname.lastname@example.org
Keller, Candice (R-Middletown) (614) 644-5094 email@example.com
Patmon, Bill (D-Cleveland) (614) 466-7954 firstname.lastname@example.org
Perales, Rick (R-Beavercreek) (614) 644-6020 email@example.com
Retherford, Wes (R-Hamilton) (614) 644-6721 firstname.lastname@example.org
Rezabek, Jeffery (R-Clayton) (614) 466-2960 email@example.com
Thompson, Andy (R-Marietta) (614) 644-8728 firstname.lastname@example.org
Vitale, Nino (R-Urbana) (614) 466-1507 email@example.com
Young, Ron (R-Leroy) (614) 644-6074 firstname.lastname@example.org
Zeltwanger, Paul (R-Mason) (614) 644-6027 email@example.com
Cera, Jack (D-Bellaire) (614) 466-3735 firstname.lastname@example.org
Cupp, Robert (R-Lima) (614) 466-9624 email@example.com
Dean, Bill (R-Xenia) (614) 466-1470 firstname.lastname@example.org
Hoops, James (R-Napoleon) (614) 466-3760 email@example.com
Householder, Larry (R-Glenford) (614) 466-2500 firstname.lastname@example.org
Kick, Darrell (R-Loudonville) (614) 466-2994 email@example.com
Reece, Alicia (D-Cincinnati) (614) 466-1308 firstname.lastname@example.org
Roegner, Kristina (R-Hudson) (614) 466-1177 email@example.com
Romanchuk, Mark (R-Mansfield) (614) 466-5802 firstname.lastname@example.org
Sprague, Robert (R-Findlay) (614) 466-3819 email@example.com
Stein, Dick (R-Norwalk) (614) 466-9628 firstname.lastname@example.org
Strahorn, Fred (D-Dayton) (614) 466-1607 email@example.com
Sweeney, Martin (D-Cleveland) (614) 466-3350 firstname.lastname@example.org
Sykes, Emilia (D-Akron) (614) 466-3100 email@example.com
West, Thomas (D-Canton) (614) 466-8030 firstname.lastname@example.org
Wiggam, Scott (R-Wooster) (614) 466-1474 email@example.com
ACTION ALERT: Payday lending reform needs 100 calls
Do you think that Ohio should have the worst payday lending interest rates in the country that can be around 600%? If no, then please call your Ohio House Representative today to support House Bill (HB) 123.
The House Government Accountability and Oversight Committee recently voted 9-1 to move HB 123 forward. With enough pressure from constituents, the bill is likely to come before the full House for a vote in mid-May. This is coming after revelations of an FBI investigation of payday lender lobbyists providing lavish international travel to the ex-Ohio House Speaker.
It is critical we make our voices heard to legislators over these two weeks. We can’t become complacent.
Our goal is to have House members receive 100 calls urging them to vote YES on this bill. Will you be one of those calls?
Please call your members of the Ohio House and ask them to vote YES on HB 123 to protect consumers and reject the influence of predatory payday lenders.
Here’s a simple sample of what you can say:
My name is ____ from ____. I am calling to urge you to vote YES on bipartisan payday loan reform, HB 123, to protect consumers and reject the influence of predatory payday lenders. Can we count on your support?
After you call, feel free to send us a note telling us how it went, and so we can thank you for your advocacy.
In case you missed the recent coverage, check out:
Editorial: Ohioans Deserve Answers to Payday Lending Questions
The Columbus Dispatch
Payday Lender Made International Trips with Ohio House Speaker
Dayton Daily News
Your calls can and are making a difference.
Thank you for your advocacy!
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SUPPORTERS PLEASED OHIO HOUSE COMMITTEE VOTES TO MOVE PAYDAY LOAN REFORM BILL FORWARD
Full House, Senate Must Act To Enact These Fair, Overdue Reforms
COLUMBUS – April 18 – Ohioans for Payday Loan Reform applauded the Ohio House Government Accountability and Oversight Committee for today voting 9-1 to send House Bill 123 on to the full House for a vote. If it becomes law, HB123 would make vast improvements to the payday lending landscape in Ohio.
Committee members voted overwhelmingly in favor of the bill as introduced more than a year ago by Reps. Kyle Koehler, R-Springfield, and Mike Ashford, D-Toledo. The only dissenting vote came from Rep. Bill Seitz, R-Cincinnati, who unsuccessfully tried to make amendments to the bill.
“It has been a long, difficult road to get this bill through committee,’’ said Springfield Pastor Carl Ruby, one of the coalition’s leaders. “I thank the majority of committee members who finally saw how much this will help hundreds of thousands of Ohio families trapped in debt and save them millions of dollars each year.
“But I especially want to thank Reps. Koehler and Ashford, who have demonstrated a sustained tenacity in working on this vital effort to protect Ohio residents,’’ said Ruby. “It’s not been easy in the face of payday lenders’ well-heeled lobbying efforts.’’
Coalition leaders also acknowledged Rep. Kirk Schuring, who had worked on amendments to HB 123 but, ultimately, agreed that the original bill should be voted on. “We might not have agreed with everything Rep. Schuring was working on, but we believe his heart was in the right place,’’ said David Thomas, a coalition leader from Ashtabula County.
“It is important that the full House move quickly to approve the bill and send it on to the Senate,” said coalition leader Nate Coffman of the Ohio CDC Association. “We can’t let them forget that in the first year this bill was stalled in committee, it cost Ohioans an estimated $75 million,’’ said Coffman. “The full House and the Senate can’t let that happen any longer. We encourage them to act swiftly in the best interests of all Ohioans.’’
Ohio has the dubious distinction of having the highest lending rates in the nation, with typical annual percentage rates on payday loans approaching 600%.
“We are certain voters will support this if legislators don’t act on reform”
February 28, 2018 - Leaders of an initiative to put payday lending reform on the November statewide ballot this morning turned in over 2,000 petition signatures to the Ohio Attorney General’s Office. This is the first step to getting the measure on the ballot. Backers are pursuing this direction because state lawmakers have not acted on reform.
The petition language calls for a constitutional amendment that would cap payday loan interest rates in Ohio at 28%.
Nate Coffman, of Ohio CDC Association in Columbus, and Pastor Carl Ruby, of Springfield, are filing the petitions. At least 1,000 of the Ohio voter signatures must be validated and the Attorney General’s Office must determine that the summary of the proposed constitutional referendum is a fair and truthful representation of the proposed law.
The Attorney General must then certify the petition to the Secretary of State. At that point, Coffman, Ruby and other supporters can start collecting the 305,591 valid registered voter signatures that must be filed by July 4 in order to get the issue on the November ballot.
“These petitions, these signatures are proof that we mean business,’’ said Coffman. “It’s been nearly 12 months since a bi-partisan reform bill, House Bill 123, was introduced and the legislation has stalled ever since. It seems like they don’t care that every day this bill doesn’t move forward, it costs Ohioans an average of $200,000 in excessive borrowing costs, or about $75 million annually. That’s not acceptable. And that’s why we are pushing for a ballot issue.’’
Payday lenders charge an average 591% annual percentage rate in Ohio, the highest such rate in the nation. Pastor Ruby said that rate is ridiculous, and he is tired of seeing lenders gouge vulnerable, lower income working Ohioans.
“It’s time for the voters of Ohio to have their say, because apparently many in the legislature are not willing or eager to advance HB 123,’’ said Ruby. “With a few notable exceptions, they seem more interested in placating the special interest groups who are profiting from these loans, than in protecting the working class borrowers who are sinking deeper and deeper into debt.’’
The ballot initiative mirrors some of the reforms called for in the bi-partisan HB 123, which seeks to establish a maximum interest rate on such loans of 28% plus a maximum monthly fee of $20.
Coffman pointed out that in 2008, Ohioans overwhelmingly voted in favor of payday lending reforms. “Since then, payday lenders have by-passed the will of the people and state law and are charging even higher prices,’’ he said. “That’s unacceptable, and we are certain Ohio voters will agree if legislators themselves don’t move quickly on reform.’’
Members of Ohioans for Payday Loan Reform, a diverse statewide coalition of more than 100 individuals and organizations that support passage of HB 123, will be asked to support the ballot initiative.
Nick DiNardo, of Cincinnati, and Michal Marcus, of Cleveland, are joining Ruby and Coffman in the push for a November ballot vote.