Ohio bill could lower payday loan cap to 28% House Republicans introduce stricter limits than measure endorsed by Gov. Strickland
By Dennis J. Willard
Beacon Journal Columbus Bureau

Published on Wednesday, Apr 30, 2008
COLUMBUS: In a surprise move Tuesday, House Republicans introduced legislation that would cap the annual percentage rate charged on payday loans at 28 percent.
The bill, which is expected to clear a House committee today and possibly hit the floor for a vote, was a sudden reversal in policy on the rate cap and appeared to be an effort to trump Gov. Ted Strickland.
On Friday, Strickland issued a letter to the Coalition for Responsible Lending stating it was critical that any payday lending bill would have an all-inclusive 36 percent rate cap.
State Rep. Chris Widener, R-Springfield, introduced legislation Tuesday that includes the 28 percent annual rate cap, bans any other fees and stops someone from having more than two loans at one time.
The bill also limits the total loan amount to $500, gives borrowers a minimum of 31 days to repay, mandates financial counseling for anyone seeking
a third loan and prohibits anyone from having more than four loans in one year.
Currently, single loans are limited to $800 and are repaid in two weeks. No one is supposed to have more than one loan at a time, but there is no method to police the industry. The Beacon Journal has interviewed individuals with 10 or more loans out at a time.
Widener's bill would create a statewide database maintained by the Ohio Department of Commerce to track loans.
The bill also would provide increased consumer protection by placing the payday industry under the Consumer Sales Practices Act and the Small Loan Act in Ohio, Widener said.
High interest rates

The industry has come under fire in Ohio and other states for charging 391 percent interest rates and trapping borrowers in cycles of debt.
Last week, Widener proposed eliminating the rate cap by allowing the industry to charge fees amounting to $15 per $100 borrowed over a two-week period, but the idea was criticized because the fees still represented a 391 percent APR.
On Tuesday, House Speaker Jon Husted, R-Kettering, pointed to the debt carried by consumers in Ohio and across the country and said the legislature needed to address the problem.
Darryl Dever, a lobbyist for Ohio Financial Service Centers Association, called the new bill the worst version yet.
''If 36 percent will put me out of business, 28 percent will only get me there quicker,'' Dever said, noting that he was ''stunned'' by the turn of events.
''The business is over. People are not going to be able to get loans, fair loans,'' Dever said. ''This bill will do away with that option. Nobody is going to make any short-term loans.''
Dever said the bill will eliminate 6,000 jobs in Ohio.
Tom Allio, executive director of the Coalition for Responsible Lending, said his organization was pleased with Widener's proposal.
''The rate cap, as well as the other provisions in the bill, mean that Ohio can legitimately lay claim to having the strongest small-loan act in the nation,'' Allio said.
Responding to Dever, Allio said the industry's uncompromising approach to regulation has come ''home to roost.''
''Our hope is that this legislation will breeze through the House and sail through the Senate. Ohio will be a stronger state with these consumer protections,'' Allio said.
Governor reviews bill

Keith Dailey, a Strickland spokesman, said the governor is reviewing the legislation and would be comfortable with any rate cap that is 36 percent or lower.
''The governor believes responsible lenders will continue to be able to run successful businesses within the context of the rate cap,'' Dailey said.
He said Strickland is not interested in eliminating the industry in Ohio.
''At the same time, the governor thinks it is important that a rate cap be in place to prevent bad actors in the industry from taking advantage of vulnerable Ohioans,'' Dailey said.
Widener said he included language in the bill to collect more data on the industry and the number of people employed because legislators were bombarded with conflicting statistics during hearings before the House Financial Institutions, Real Estate and Securities Committee he chairs.
The Ohio Department of Commerce has a list of storefronts, but little else is known about the payday lending industry in the state.
Widener's bill would also ban Internet payday lending in Ohio.

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I'll be out of college soon, and my parents are trying to keep their sanity in finding easier means of providing financial aid to the family. Piles of bills are on the drawer. Not to mention feeding the mouths of five. Even I, as a working student, find it hard to provide for my daily needs. School fees and daily allowance, not to mention projects and school activities to attend to. And the next payday is still a week from now. I bet that not only I suffer from this kind of dilemma. And I know you also have expenses to think of. So how can we get our hands on those easy bucks the easy way.

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Today if you find yourself deep in payday cash loan debt you are just one in many thousands who are suffering right along with you. At the time you probably felt that you would be able to pay the loan back but then found that unexpected demands on your finances put you in the awful position of not being able to pay it back when it became due. The loan fees may have seemed relatively cheap at the time because of your dire need for the cash. In any event you may have gotten behind, but many others have also.
Many times people begin borrowing from other payday loan stores or companies to pay back their other payday loans or their online no-fax loans and it becomes a terrible cycle of borrowing that is hard to get out of. In spite of this there are a number of good ways to stop this cycle of bad credit. So carefully consider all the other possibilities before deciding on a payday cash loan if you need to borrow again.
When you need to borrow money make sure you shop around carefully. You need to compare all the offers you can find from both offline and online lenders, including payday cash advance loans and any other short term loans you can find. You want to look for the credit offer with the lowest APR (annual percentage rate) you can find.
Consider getting a small loan from your local credit union or reputable small loan company, getting an advance-on-pay from your employer if theyre willing, or a small loan from family or friends if you are absolutely sure you can pay it back at a set time.
A cash advance on one of your credit cards also may be a possibility, but make sure to check the interest rate closely because it may have a much higher interest rate than the other sources of cash that youre considering. Find out all the terms and read the fine print before you make any moves in that direction.
If you own a reputable small business, a local organization or association may make a small business loan to you. And check out your bank for a reserve line. Some banks offer reserve lines as overdraft protection and this can often be in the thousands for personal or business accounts. I t may be worth opening up another account in another bank to get it. Consider keeping both accounts because of the history youve developed which can be important for future borrowing.
Make sure you closely compare both the annual percentage rate and the finance charge on all credit offers so you get the best and lowest cost before you commit to any type of loan including any quick cash payday loans. The finance charges may include loan fees, interest and a variety of credit costs.
Although you may be embarrassed or cringe at the thought, pick up the phone or visit your creditors and ask them to give you more time to pay your debt. They will be happy to hear from you and more often then not will appreciate the connection and try to work out something with you that is feasible. Make s sure to find out if they will be adding on any finance charges or give you a higher interest rate than you were paying.
Its absolutely necessary to pencil out a truly realistic budget - figure your monthly and daily expenses. Many people shun this advice but you must know exactly where your money leakage is. Try to avoid any luxury or unnecessary purchases - even on small daily items. Its best if you can keep a daily journal for you and each family member of all the big and especially little expenses. These costs can add up faster than lightning. Total up your daily expenses to see what they are costing you monthly. Buying coffee or lattes at coffee outlets are a big drain if you are spending $3 to $4 per cup. Just $3 a day is $90 a month! But there are many other drains as well.
When youre deep in payday loan debt its hard to even think about building some savings - but even small deposits can help - to avoid borrowing for emergencies, unexpected expenses or any other unplanned items. After you turn yourself around and you can do it with due diligence then put the amount of the fee that would be paid on a $200 cash til payday loan in a savings account for six months so you have some extra cash available. Youll have peace of mind and a good defense against any financial emergencies that come up.
Further discussing overdraft protection as I mentioned - find out if you already have, or can get, any overdraft protection on your checking account. If you usually deplete the funds in your checking account or if you make an honest mistake in your checking account records, overdraft protection will help protect your good credit rating and standing with your bank.
So make sure you find out the exact terms of your banks overdraft protection. Having this protection on any overages will in a sense be borrowing from a reserve account or line of credit. There is no penalty for doing this usually, just normal interest charges. You do want to pay it back just as soon as possible though and that would be a separate payment to your reserve line for the amount that was overdrafted.
If you need professional help working out a bad debt repayment plan with your creditors or developing a workable budget, then contact your local or regional non-profit consumer credit counseling service. There are many non-profit credit counseling groups or agencies in every state that offer good credit guidance. These services are usually available at very little or no cost to you. But be cautious about any consumer counseling services that charge a fee for their services. Get referrals or recommendations from your local CPAs, accountants or bookkeepers to find these agencies or check the business pages in your phone book.
Also, you can check with your credit union or housing authority for any no-cost or low-cost credit counseling programs they may have. Employers sometimes may be helpful but some people dont want to let their employer know they are having financial difficulties.
Another way that is commonly used is to contact a local small loan company or other lenders and consolidate the loans into one if the interest rate is workable. But only do this if youre sure you can afford the monthly payment. If you do go this route and still have difficulty paying on the loan you might have them rework the loan for a longer term for a lesser monthly payment. Theyre usually more than willing to do it.
If you decide you want to get a payday cash loan now or in the future, when you fill out the application borrow only as much as you know you can afford to pay with your next paycheck and still have enough left over to make it to your next payday.
By using some of these tips you may be able to avoid getting into more debt or be more informed about what you can do to start getting out of debt. These are just some of the many ways you can get out of payday cash loan debt. Yes there are still other ways to turn your bad debt situation around.

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A phenomenon which started in the United States so called payday loans are fast becoming popular here in the UK as a way of getting cash fast. Payday loans are very short term loans which can be approved and paid within a matter of hours.
The loans are designed to be leant over a period of one month and repaid at the end of the month when the customer receives their monthly paycheque. Small short term loans of no more than £750, they are advertised as the potential answer to temporary money worries, offering a fast cash injection to tide you over until payday.
The loans have been criticised for their shockingly high rates and the ease with which you can obtain one. The pre-requisites to qualify for a payday loan are simply to be over eighteen and in full time employment. No credit checks take place and there is no discrimination on the basis of your status or income.
What alarms financial experts as well as the ease in obtaining one of these loans is the high rates. Typically for each £100 borrowed, you pay back £125. That means that on a maximum loan of £750, you would pay back £937.50. The annual percentage rate (APR) for many of these companies is a massive 1,355.
However, APR is perhaps a misleading measure for these loans as they are not intended to be paid back over a period as long as a year. The charges are high when paying it back on time, but if you do take as long as a year to repay the loan, the costs can be devastating. An additional £25 charge is added to each £100 borrowed in addition to the £25 standard interest for each month that your payment is late. A £100 loan can escalate to £400 in 6 months and almost £1,400 over a year.
Many of these companies target young people advertising on social networking sites popular with young people, such as Facebook. In defence of the loans, a spokesman for the company behind Payday UK says that “bouncing cheques or incurring unauthorised overdraft fees, can work out considerably more expensive to the customer than the equivalent charges on a payday loan”, suggesting that payday loans can be the cheaper option for those struggling with the bills.

The best top 10 >>> payday loan

Very often, you are exposed to emergencies and you need quick cash to do something big. You search around for help but hardly get any. But now you need not worry. Here is a loan, which is specially made to help you in your financial crisis. Online payday loan is an unsecured loan and is the solution for those who need quick money through a quick process.

Loan amount and repayment time

You can avail an amount ranging from 80 to 500. The repayment period ranges from 1-2 weeks. If you fail to repay the loaned amount in time, then you will need to repay the loaned amount by paying extra fees to the lender along with the interest.

Availability

All you need to do is, connect to the internet and fill in the payday loan application form and the loan is transferred directly into your account which saves time and makes the process much more convenient, as you do not need to go visit payday loan companies. All details regarding the loans, the repayment options, the fees and the lender's background are available online. Payday loan companies are very prompt in reverting back to your queries. The loan gets approved within 24 hours and the loan amount will be transferred directly to your account by the next working day.

dvantages

No security to be placed
Credit check not demanded
Easily available
Quick processing
Fast approval as fast as 24 hours

resource:http://www.ezinesarticle.

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