The Payday Lending
Business Model
"The theory in the (payday) business is you've got to get that customer in, work to turn him into a repetitive, long-term customer, because that's really where the profitibility is."
- Dan Feehan, CEO of Cash America, at the company's 2007 annual meeting
Ohio Coalition for Responsible Lending
Endorsing Organizations
1. Advocates for Basic Legal Equality, Dayton Office
2. Barberton Area Community Ministries
3. Beaumont School
4. Bethany House Services, Inc.
5. Catholic Charities, Diocese of Cleveland
6. Cleveland Diocesan Social Action Office
7. Coalition on Housing and Homelessness in Ohio (COHHIO)
8. Ohio State Legal Services
9. ACCESS - Step II
10. ACORN
11. ACTION
12. Adams-Brown Community Action Program (ABCAP)
13. Agape Recovery Solutions
14. Akron Dominican Community
15. Akron Summit Community Action, Inc.
16. Allen Metropolitan Housing
17. Alpha Phi Alpha Homes, Inc. of Summit, Stark, Portage, Cuyahoga, Mahoning and Trumbull Counties
18. American Association of Retired Person (AARP Ohio)
19. American Family Title Agency, Inc.
20. American Rescue Worker
21. Ashland First United Methodist Church
22. Ashtabula County Community Housing Development Organization
23. Asian American Community Services
24. Association of Community Organizations for Reform Now (ACORN)
25. Beatitude House
26. B & L Properties
27. BREAD
28. Burdman Group, Inc. of Mahoning, Columbiana & Trumbull Counties
29. Call to Renewal of Summit County
30. Catholic Action Commission of Lorain County (CACLC)
31. Catholic Campus Ministry OSU - St. Thomas More Newman Center
32. Catholic Charities, Diocese of Toledo
33. Catholic Charities Regional Agency of Mahoning County
34. Catholic Commission of Lake and Geauga (CCLG)
35. Catholic Commission - Summit County (CC)
36. Catholic Commission of Wayne, Ashland & Medina (CCWAM)
37. Catholic Youth Organization & Community Services (CYO) of Summit, Stark, Wayne and Cuyahoga County
38. CCCS of Portage & Columbiana County
39. CDCAGC of Cincinnati
40. Center for Independent Living Options
41. Center for Responsible Lending
42. Central Vineyard Church
43. Champaign County Ministerial Association
44. Cincy Youth Empowerment Program
45. Citizens Against Loan Sharks
46. City of Youngstown
47. Clement Counseling Center
48. Cleveland City Council
49. Cleveland Housing Network
50. Cleveland Tenant Organization
51. Coleman Professional
52. Columbus Housing Partnership
53. Commission on Catholic Community Action (CCCA)
54. Common Wealth, Inc.
55. Community Action Agency of Columbiana Co., Inc.
56. Community Action of Wayne/Medina
57. Community Action Organization of Delaware, Madison and Union
58. Community Action Partnership
59. Community Development for All People
60. Community Land Cooperative of Cincinnati
61. Community Peace Builders
62. Community Properties of Ohio
63. Community Services of Stark County, Inc.
64. Community Shelter Board
65. Community Support Services, Inc.
66. Community United for Action - Cincinnati
67. Consumer Credit Counseling (2)
68. Consumer Credit Counseling Service, Warren
69. Corporation for Ohio Appalachian Development (COAD)
70. County Executive of Summit County
71. Cuyahoga Falls City Council
72. CWA Local 4546
73. Daybreak
74. Dayton Ohio Habitat for Humanity
75. Deaf and Deaf Blind Committee on Human Rights
76. Del-Mor Dwellings Corporation
77. DePaul Center
78. Detroit Shoreway Community Development Organization
79. Enterprising Community Partners of Cleveland
80. East End Community Services
81. East Side Organizing Project
82. Elementz
83. Episcopal Diocese of Ohio
84. Episcopal Diocese of Southern Ohio
85. Excel Development Co., Inc. of Hamilton County
86. Extended Housing, Inc.
87. Faces of Stark County, Inc.
88. Fairfield Metropolitan Housing Authority (FMHA)
89. Fair Housing Advocates
90. Fair Housing Resource Center of Lake County
91. Faith Community United Credit Union, Inc.
92. Faith Mission/Faith Housing
93. Family & Community Services, Kent
94. Family & Community Services, Lisbon
95. Family & Community Services, Ravenna
96. Family Service Agency, Youngstown
97. Family Service Council of Ohio
98. Fayette Metropolitan Housing
99. Findlay Hope House for the Homeless, Inc.
100. First Call for Help
101. First Link
102. Franciscan Friars (FM) St. John the Baptist Providence
103. Frontier Community Services
104. Fullarton Management, Inc.
105. Gallia Meigs Community Action
106. Greater Columbus Jobs with Justice
107. Habitat for Humanity of Greater Columbus
108. Habitat for Humanity - Medina
109. Habitat for Humanity of Ohio
110. Hardin County Salvation Army
111. Havar, Inc.
112. Haven Center
113. Headley's
114. Help Hotline Crises Center
115. Highland Metropolitan Housing
116. HHWP Community Action Commission (Allen, Hancock, Hardin, Wyandot, Putnam Counties)
117. H.M. Life Opportunity
118. Hocking County Housing Coalition
119. Home Repair Resource Center of Cleveland Heights
120. Hunger Network in Ohio
121. Immaculate Heart of Mary Parish, Social Justice Commission
122. Interchurch Social Services of Knox County, Inc.
123. Inter Parish Ministry
124. Jireh Services, Inc.
125. Jobs with Justice
126. Lancaster-Fairfield Community Action Agency
127. LEAD, Dayton
128. Legal Aid Society of Cleveland
129. Legacy, III
130. Leighty & Snider, Inc.
131. Liberty Community Center
132. Life Span, Inc.
133. Lighthouse Youth Service
134. Lima Allen Council on Community Affairs (LACCA Fair Housing)
135. Lorain County Board of Commissioners
136. Lorain County Commissioners
137. Lorain County Homeless Task Force
138. Lorain County Urban League
139. Lutheran Metropolitan Ministry
140. Madison County Family Council
141. Mahoning County Association of Churches
142. Mahoning County Mental Health Board
143. Mahoning Valley Coalition for Community Reinvestment
144. Mahoning Valley Dispute Resolution Services
145. Mental Health America of Licking County
146. Mental Health Housing Leadership
147. Mercy Manor, Inc.
148. Miami Valley Fair Housing Center, Inc.
149. Miami Valley Housing Opportunities (MVHO)
150. Ministry for Community
151. Mosyjowski & Associates, Engineers
152. National Affordable Housing Trust
153. National Foundation for Credit Counseling
154. Nazareth Housing Development Corporation
155. New Home Development Co., Inc.
156. New Life Community
157. NHS of Greater Cleveland
158. NOAH
159. Northeast Ohio Legal Services
160. Northeast Ohio Synod Evangelical Lutheran Church in America
161. Northwestern Ohio Community Action Commission (NOCAC)
162. Ohio AFL-CIO
163. Ohio Association of Community Action Agencies (OACAA)
164. Ohio Association Teachers of Family and Consumer Sciences Board of Directors
165. Office of Consumer Affairs, City of Akron
166. Ohio Association of Family & Consumer Sciences
167. Ohio CDC Association
168. Ohio Conference of NAACP (National Association for the Advancement of Colored People)
169. Ohio Conference of Seventh-day Adventists
170. Ohio Council of Behavioral Healthcare Providers
171. Ohio Council of Churches
172. Ohio Habitat for Humanity
173. Ohio Heartland Community Action Commission (O.H.C.A.C.)
174. Ohio Legal Assistance Foundation
175. Ohio Northeast Health System
176. Ohio Partners for Affordable Energy
177. Ohio PIRG
178. 133rd Convention of the Diocese of Southern Ohio
179. Open M
180. Organize Ohio - Cleveland
181. Orrville Area United Way
182. Oxford Citizens for Peace & justice
183. Pathways of Licking County
184. Perry County Democratic Forum
185. Pickaway County Community Action
186. Precious Blood Church (Social Justice Committee)
187. Progress Ohio
188. Public Service Consulting
189. Queen of Heaven Church
190. Rainbow Place II
191. Robert J. Otterman, State Representative 45th District
192. Rock of Faith CDC
193. Ross County Community Action
194. Salvation Army - Ashland, Ohio
195. Salvation Army - Cleveland, Ohio
196. Salvation Army - Mahoning County Area Services
197. Salvation Army - Newark
198. Schoonover Boyer & Associates
199. Service Employees International Union (SEIU District #1199)
200. Shelby MHA
201. Slavic Village Development
202. Society for Equal Access
203. Southwestern Ohio & Northern Kentucky Change to Win
204. South Westerly Tenants
205. Stark County Community Mental Health Board
206. Stark County Out of Poverty Development (SCOPP, Inc.)
207. St. Jude's Catholic Church - Social Concerns Committee
208. St. Paul A.M.E.
209. St. Philip Neri-Free Hand Ministry Center
210. St. Sebastian Social Justice Ministry
211. St. Vincent de Paul Society
212. St. Vincent de Paul Society of Columbia Station
213. St. Vincent de Paul Society, Dayton
214. St. Vincent de Paul Society of Huber Heights
215. St. Vincent de Paul Society, St. Elizabeth Ann Seton Conference
216. Serenity House
217. Summit County Council
218. Summit County Mayors Association
219. The Ability Center of Defiance
220. The Empowerment Center of Greater Cleveland
221. The House of Refugee Missions, Inc. (T.H.O.R.M.I.)
222. Senior Rabbi Richard Block, The Temple-Tiferth Israel
223. The Village of West Salem
224. Toledo Fair Housing Center
225. Tri-County Independent Living Center, Inc. of Summit, Stark and Portage Counties
226. Tri-County Regional Labor AFL-CIO
227. Trumbull Community Action Program
228. United Way of Summit County
229. Upper Arlington Progressive Action
230. Voices for Justice
231. Volunteers of America, Inc.
232. West Ohio Conference United Methodist Church
233. Western Stark Medical Clinic
234. West Side Catholic Center
235. Wings Enrichment Center
236. Wooster City Council
237. Wooster Friends Meeting
238. Yellow Springs Home, Inc.
239. Young Men's Christian Association of Central Ohio (YMCA)
240. Young Men's Christian Association of Columbus (YMCA)
241. Wood, Sandusky, Ottawa, Seneca (WSOS) Community Action
242. Youngstown City Health
243. Youngstown Diocesan Social Action Office
House Concurs with Senate, Bill Heads to Governor
Ohio House Concurs with Senate 70-24; Governor Strickland set to sign bill into law
View the summary of House Bill 545
HB 545 AnalysisGovernor Strickland Supports 36% Rate Cap on Payday Lending
Governor Strickland announced his support of a 36% rate cap in letter to coalition
View Governor Strickland's Letter Below
Ohio Governor's LetterSign the Online Faithful Pledge!
Your voice will help Ohioans entrapped by usurious predatory payday lenders!
Today, throughout Ohio, payday lenders are exploiting more than 300,000 low to moderate income individuals by charging them exorbitant interest rates on a typical $300, short term loan. The business model of the payday lending industry traps borrowers into a cycle of debt in which they cannot easily escape. The typical borrower in Ohio takes out some 12.6 loans per year. Our state permits these transactions because of a 1995 Ohio law that exempted payday lenders from the state's usury laws.
As people of faith, we are concerned about the negative impact of payday lending on family life, our communities and the economy of the State of Ohio. We are also concerned about the increased demands placed upon our hunger programs, and emergency services that are a result of people being exploited through payday loans.
The practices of payday lenders constitute a modern day form of usury and people of faith have a moral responsibility to take action. Our various faith traditions offer strong admonishment against those who would oppress and victimize the poor and vulnerable. The prophetic tradition condemns fraud, exploitation and usury. For instance, in Exodus 22:25:"If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usury, neither shalt thou lay upon him usury." (See also Deuteronomy 24:10-14). In the New Testament, Jesus overturned tables of the money chargers and admonished those who had made the temple "a den of robbers." (Mark 11:15-17, John 2:13-22).
Lending should help build a future, not destroy it with triple digit interest rates and a downwards spiral of debt. Ohioans should have access to short term, small loans that charge reasonable interest rates and allow for a borrower to make installment payments. Accordingly, we make this Faithful Pledge urging members of the Ohio General Assembly and the Governor to support an interest rate cap of 36% on small loans.
Click here to sign the online pledge> >
Payday Lending Bill Introduced In Ohio Senate
Ohio State Senators Tim Grendell (R-Chesterland) and Ray Miller (D-Columbus) introduced Senate Bill 319, a companion bill to House Bill 333
SB 319 Introduced in Ohio Senate with 13 Co-sponsors
Senate Bill Introduction Press ReleaseCity Club held Forum on Payday Lending on Friday, March 28th
View the Forum Brochure Here (PDF)
Ohio State Representative Bill Batchelder (R-Medina) and Ohioh State Senator Ray Miller (D-Columbus) discussed their efforts to protect Ohio consumers from predatory payday lending at the City Club
View the Forum Brochure
City Club Speaker SeriesOhio Religious Leaders Unite to Support Payday Lending Reform
In a strong display of broad faith-based opposition to predatory payday lending, several Ohio Bishops and religious leaders representing some of Ohio's most influential religious organizations will speak out against "modern day usury" during a press conference call. All participating organizations are part of the 231-member Ohio Coalition for Responsible Lending (OCRL).
Download Media Advisory & Related Materials
Media AdvisoryOhio House & Senate Phone Directory
Vineyard Church of Columbus Press Release
Catholic Conference of Ohio Statement on Payday Lending
Statement of Reverend Tim Ahrens
Bishop Ough's Testimony to FIRES Committee
West Ohio Conference of the United Methodist Church Action Page
Payday Resolution Adopted at the 133rd Annual Episcopal Diocesan Convention
Listen to Message from Representatives Batchelder & Hagan
Click here to find your state representative and call to support HB 333!
Categories: Other Resources & Materials
Ohio Has a Problem
Click on hyperlinks in the letter below
Ohio has a problem and you are key to its solution. It's called payday lending. On the surface, it looks pretty simple: a small loan is offered for a one-time financial crisis. But here's what really happens: a borrower takes out a loan at 391% APR and two weeks later, finds himself unable to pay back the principle, interest and fees plus all other bills. So he takes out another payday loan to cover the first one. The average Ohio borrower repeats this process 13 times each year, so it's no wonder that last year, more than 300,000 hard-working families were tethered to mounting debt caused by this usurious product.
The current mortgage and foreclosure crisis clearly demonstrates that giving loans to people who cannot afford to pay them back not only harms the borrowers but also has costly consequences for entire communities.
Payday lending businesses have multiplied in and around your community, exploding from 107 storefronts in 1996 to 1,562 in 2006. The lucrative industry thrives because of changes made in 1995 to Ohio's lending laws, which exempted payday lending from Ohio's usury cap. Payday lenders charge outrageous rates of 391% APR and last year siphoned $318 million in interest and fees from our communities. Several communities have taken action by passing resolutions in opposition to the payday lending product. Below is an actual copy of a Federal Truth in Lending Disclosure form from an Ohio payday lender showing the 391% APR most commonly charged.
The solution to this critical problem is the passage of House Bill 333, currently pending in the Ohio legislature. This bipartisan bill, sponsored by Reps. Batchelder and Hagan, supports a rate cap on payday and other small loans of 36% APR. Governor Strickland recently said, "Usury is an old sin. . . it can be very harmful." Even the governor supports with a rate cap.
Please call your State Representative today and voice your support for House Bill 333. Tell them is no longer room in Ohio for abusive lending products. Tell them Ohio deserves better!
You can search for your State Representative by clicking here.
Thank you for your valuable support!
Sincerely, Tom Allio Chair, Ohio Coalition for Responsible Lending
