APRs on Ohio payday loans had been as steep as 391 percent. After the statewide vote in 2008, did staggering APRs end? No.
Payday lenders re-licensed themselves under other Ohio loan laws. Payday lenders may still charge Ohio payday borrowers outrageous APRs.
That’s why last June — roughly 41 weeks ago — Rep. Matt Lundy, an Elyria Democrat, introduced a bill to close the loophole the payday industry is using. And for 41 weeks, Lundy’s loophole-closer has been stuck in the Ohio House Financial Institutions, Real Estate and Securities Committee.
Eleven Democrats and 10 Republicans are on the committee. Hmm. Democratic-run House; Democratic-run committee; bill sponsored by a House Democrat; and yet 41 weeks of nothing.
Part of the reason is mulishness by Republicans, who don’t mind seeing committee Democrats embarrassed. GOP smirks might vanish, though, if Democrats told voters in some tight GOP House districts how their Republican “representatives” are bucking voters’ 2008 decision.
Another angle is one-on-one lobbying of Ohio legislators by Statehouse lobbyist Neil S. Clark’s firm, Grant Street Consultants. It represents CheckSmart Financial. Clark said Thursday, March 18, that Grant Street “has met with every member of the Ohio House at least once” to argue against Lundy’s bill.
And part of the reason Lundy’s bill is stalled may be claims like those of a committee Democrat, Rep. Sandra Williams of Cleveland. Williams has written that she opposes Lundy’s bill because it doesn’t address what Williams claims is the underlying problem — access to credit.
She also wrote, however, “I was elected to represent the people of my district.” And the 11th District’s voters have said they want a 28 percent APR cap.
Contrast Williams’ perspective with that of another committee member, Rep. Robin Belcher, also a Cleveland Democrat.
Belcher said she supports Lundy’s bill — and the 28 percent APR cap. So does a Belcher challenger in May 4’s Democratic primary, ex-Cleveland City Council member Bill Patmon.
But for the term-limits curse, everyone at the Statehouse would have enough experience to know that you don’t thumb your nose at Ohio voters, especially when the 28 percent APR cap had bipartisan support.
Will the Ohio House’s Democratic majority side with the people — or with the loan sharks called payday lenders?
Thomas Suddes is an adjunct assistant professor at Ohio University. Send e-mail to tsuddes@gmail.com.