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 Central Ohio

229. United Way of Greater Cincinnati

230. United Way of Summit County

231. Upper Arlington Progressive Action

232. Voices for Justice

233. Volunteers of America, Inc.

234. West Ohio Conference United Methodist Church

235. Western Stark Medical Clinic

236. West Side Catholic Center

237. Wings Enrichment Center

238. Wooster City Council

239. Wooster Friends Meeting

240. Yellow Springs Home, Inc.

241. Young Men's Christian Association of Central Ohio (YMCA)

242. Young Men's Christian Association of Columbus (YMCA)

243. Wood, Sandusky, Ottawa, Seneca (WSOS) Community Action

244. Youngstown City Health

245. Youngstown Diocesan Social Action Office

House Bill 545 passes overwhelmingly, moves to Senate

New House Bill

Senate Finance & Financial Institutions Committee to hear HB 545 on Tuesday, May 13th

Please support HB 545 by joining the Coalition for the bill's 3rd hearing at 2:30 p.m. in the Finance Hearing Room

View the summary of new House Bill 545

HB 545 Analysis



Governor Strickland Supports 36% Rate Cap on Payday Lending

Governor Strickland's Letter

Governor Strickland announced his support of a 36% rate cap in letter to coalition

View Governor Strickland's Letter Below

Ohio Governor's Letter



Sign the Online Faithful Pledge!
Your voice will help Ohioans entrapped by usurious predatory payday lenders!

Click here to sign the online pledge> >

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

View Senate Bill 319 (PDF)

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 Release



City 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 Series



Ohio Religious Leaders Unite to Support Payday Lending Reform

View this document (PDF)

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).



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