The upcoming November 4 election is known in the minds of most people as America’s next presidential election. However, there are many important ballot measures that you the voter should pay attention to. Issues and propositions come and go, but that doesn’t mean they aren’t important to you. There’s one in Ohio that involves payday loans, but it is about so much more than that.
Case in point: the people of Ohio have the opportunity to make their voices heard on an issue that will impact their freedom to choose, an issue that will take away one more piece of their financial freedom if it passes.
I’m talking about Issue 5, Ohio. If you value your financial freedom and care whether or not over 6,000 people in your state lose their jobs, YOU MUST VOTE NO ON ISSUE 5.
There are working and middle-class families who live paycheck to paycheck or simply need extra financial help at times. As a quick, discreet, inexpensive option for those with less than perfect credit, faxless payday loans are an option that such consumers should have the right to access if they choose.
If banks and credit unions had their way…
Online payday loans that cost $15 per $100 loaned are not uncommon in Ohio and elsewhere. This is much less expensive than any of the following:
- Checking overdraft penalty: $35
- Credit card late fee: $29
- Utility bill with late/reconnect fee: $50
- Bounced check fee to bank and vendor: $51Sources: Avg. NSF fee $28.23 (Bankrate.com, Fall 2007); Avg. merchant returned check fee $26.64 (2006 CFSA fee survey); Avg. off-shore internet payday advance (mypaydayloan.com); Avg. credit card late fee (Credit Cards: Increased Complexity in Rates and Fees, Government Accountability Office, 2006); Avg. overdraft protection fee (Bankrate.com 2007); Typical payday advance fee (CFSA).
However, if supporters of Issue 5 have their way, the following scenario would be a reality. Let’s say you meet a stranger on the street who asks to borrow $100 for two weeks from you. Would you agree to the loan and only charge $1 and change interest? That doesn’t make sense for an individual, let alone a business.
Such a low rate could not sustain a business. Period. That’s what a 36 percent annual percentage rate cap – courtesy of Issue 5 – would do to the payday advance loans industry.
It would put over 6,000 people and 1,600 businesses out of work
America is experiencing perhaps the biggest credit crunch in its history, as well as great economic uncertainty. Does it sound like a good idea to you that lawmakers eliminate financial options that consumers have? Does it sound like a good idea to you that lawmakers – often backed by big banks – are essentially pushing consumers toward more expensive choices, particularly overdraft protection, which can easily become astronomically expensive?
Overdraft is particularly dangerous in America’s increasingly cashless, debit-card society of today. If you didn’t know that already, click the link, because you need to know.
Save jobs in Ohio. Save your own right to choose what you do with your money and when you can get payday loans.
Why should the citizens of Ohio remain dependent on banks and/or credit cards? Why is it so important that those be the only options available? The most obvious answer is that this measure isn’t backed by altruism; this measure is backed by the banking interests. The banking industry has been taking an enormous string of hits over the last few years and this is a way they try to recover: not by using fair dealings, but by eliminating all the competition through special interest groups and lobbyists. Should this measure pass there, and then perhaps the nation itself, then congratulations America: Welcome to Totalitarianism.
Considering the fact that most no fax payday loans have a fee of $15 per $100, it’s an affordable alternative when you’re unable to stretch your paycheck due to an unexpected expense. Some people may still claim this interest rate is high, but consider what most banks and credit unions will charge for a small loan before making a conclusion. Voting No on Issue 5 will keep the only reasonable option available to those who are in need of a little financial help from time to time and most importantly, preserve the peoples rights to financial freedom.