COLUMBUS, OH – The Ohio Grocers Association today gave its endorsement for the efforts of Ohioans For Financial Freedom to repeal section (3) of H.B. 545 saying the legislation goes too far and will hurt Ohio grocers and consumers.

“The national credit and foreclosure crisis has had a detrimental impact on our already struggling economy. While we applaud the Ohio Legislature’s intention to curb that impact, by passing H.B. 545, we do not feel that eliminating funding sources for consumers is the way to solve the problem,” said Tom Jackson, President/CEO of Ohio Grocers Association. Jackson stated that his association members’ customers who have responsibly utilized the services of the payday lending industry may have that financial option eliminated in a future financial pinch. “If payday lending businesses cease to exist in Ohio, which is likely if H.B. 545 is enacted, OGA’s members could be hurt through an increased number of bounced checks, fraudulent checks and even theft. We have many grocers who operate in underserved areas of the state, areas that could experience an even greater impact by the loss of additional lending choices, choices that should be made by each consumer, not by the government, said Jackson.”

The Ohio Grocers Association believes that the regulated, reliable short-term funding source for many Ohioans should remain intact as to prevent additional hardships on Ohio’s small businesses that they clearly don’t need –especially with the current economic challenges. The potential loss of 6,000 payday lending jobs and their loans could ultimately result in lost business for everyone in the community.

For immediate release:
Tuesday, August 26, 2008

“SHOW OHIOANS THE MONEY!”

Columbus― The Committee of Ohioans For Financial Freedom today called on the Coalition on Homelessness and Housing (COHHIO) to Show Ohioans the Money behind the new deceptive websites aimed at killing jobs and financial choices in the state, or immediately shut them down.

The COHHIO websites (www.end391.org and www.yesonissue5.com) both solicit donations purportedly to support passage of Issue 5 yet contributions are directly deposited into their taxpayer supported Coalition on Homelessness and Housing via a PayPal account.

“The websites expressly urge a “Yes” vote on Issue 5 yet fail to carry a disclaimer disclosing who paid for the websites as is required by law for any ballot committee attempting to influence an issue election,” said Kim Norris spokesperson for Ohioans For Financial Freedom. “COHHIO should immediately disclose who is funding this campaign to kill 6,000 jobs in Ohio.”

The COHHIO is a 501(c) 3 tax exempt corporation. It receives hundreds of thousands of taxpayer dollars every year.

“Why is this organization, which is supposed to help the homeless, hiding who is really paying for this campaign? Are they using taxpayer money? Or, are they being funded by powerful special interests such as the credit unions who are trying to put their competitors out of business?” asked Norris.

According to Network Solutions the domain name for COHHIO’s website (www.end391.org) is actually owned by Connie Busch of eSpace communications, a Dublin, Ohio based consulting firm whose clients are Telhio Credit Union, e-Choice Solutions which is an online brokerage for credit unions in Ohio, and CU Ballot , an electronic voting system for credit unions. (see eSpace’s website here: http://www.espacecommunications.com/portfolio.html.

“COHHIO should come clean on who is paying for his campaign in Ohio.”

For Immediate Release
August 25, 2008

Ohio Chamber of Commerce Backs Ohioans For Financial Freedom To Keep Jobs and Consumer Choice

COLUMBUS, OH – The Board of Directors of the Ohio Chamber of Commerce has given its support to Ohioans For Financial Freedom saying imposing overbroad government regulations is not the way to revitalize Ohio’s economy.

“The Ohio Chamber champions free enterprise and economic competitiveness and we believe HB 545, as passed by the Ohio General Assembly, runs counter to our mission”, said Andrew E. Doehrel, president and CEO of the Ohio Chamber of Commerce. “This new law, if not reined in by Ohio voters, will drive an entire industry and 6,000 good-paying jobs out of our state.”

If HB 545 goes into effect it means the loss of nearly $300 million to Ohio’s economy including $172.6 million in annual employee payroll, benefits and payroll taxes, $76.8 million lost in rent revenue to landlords across the state, and $23 million lost in advertising vendors. In response to this legislation, most of the major payday lending companies have announced they will close stores in Ohio putting as many as 6,000 jobs with benefits in jeopardy.

“As we strive to turn around our economy we must allow the free market to meet consumer demands and facilitate the creation of much needed jobs”, said Doehrel.

With 1,600 stores in the state, consumer demand for short-term credit is clear. Payday advance fills a need not met by traditional financial institutions and is a convenient, less costly option for short-term, unsecured credit. Removing access to reasonably-regulated storefront payday lending will force consumers into more expensive, and possibly even less-desirable, alternatives.

Ohioans For Financial Freedom is working to repeal section (3) of HB 545 offering consumers more lending options.

For immediate release:
Friday, August 22, 2008

Committee Says Bill Faith Should Stop Perpetuation of Lies
Disclose Spending

Columbus― The Committee of Ohioans For Financial Freedom today responded to Bill Faith’s ongoing efforts to confuse Ohio voters.

“We have fully investigated these bogus allegations and yet Mr. Faith continues to perpetuate lies – especially about Butler County where we have documented evidence from the Secretary of State and Butler County Board of Elections, that our circulators were NOT there,” said Kim Norris spokesperson for Ohioans For Financial Freedom. “Rather than perpetuate lies, the public would be better served by knowing who is paying for Bill Faith’s campaign – he should report where the money is coming from.”

The Committee investigated this allegation of two homeless individuals allegedly being paid $1.00 for their signatures and found it to be completely false, and asked Bill Faith to immediately retract this false allegation, and any references to it on his website or any other website maintained by his organizations.

The Committee did not obtain the Attorney General's certification of its summary of the law to be referred until late in the day on July 10, 2008. Circulation of the Committee's referendum petition did not begin until July 12, 2008. It is impossible for either Mr. Schirmer or Ms. Smithers to have signed the Committee's referendum petition in June, let alone to have been paid for doing so.

Originally posted at www.news-press.com

The author George Orwell stated: "to see what is in front of one's nose is often a constant struggle." In the case of payday lending, an industry under constant attack by the media and special interests, seeing the obvious truths about this service requires an epic struggle with its critics. One of the loudest critics is The Center for Responsible Lending, an organization dedicated to the elimination of payday lending. If we are to believe their full-throated indictments against payday lending we would think that lenders are making profits hand over fist.

But this just isn't the case.

On average, the nation's five publicly traded payday lending companies earn a 6.6 percent profit on their income. To help put this in perspective, IHOP Corp., otherwise known as the International House of Pancakes, earns a profit margin of 12.6 percent. Is IHOP gouging Americans' wallets with their Belgian waffles, omelets, and blueberry pancakes? The restaurant industry is commonly said to have "razor-thin profit margins," yet payday lending companies earn half of what this well-known chain brings in.

When compared to traditional banks, payday lenders' profits are measly. The average profit margin of the top 10 banking holding companies in the United States is 18.5 percent. Traditional banks earn far higher profit margins on late charges, bounced checks fees, ATM fees, over-draft protection, and credit card balances than what payday lenders earn on their regular fees. The bank profits come from charges most people don't think twice about paying nearly every day. But again, no one is accusing the traditional banks with overcharging Americans.

http://www.ohioans4financialfreedom.com/

This ad brings up a very important issue: consumer choice. Whether you agree with payday lending or not, the point is that consumers should have the freedom to make their own financial decisions. Who are politicians to take away these freedoms?

-Jonas

Check out this ad. It brings up some great points...

http://www.ohioans4financialfreedom.com/

Here's a blog about this ad... and a forum for your comments...

http://blog.dispatch.com/dailybriefing/2008/08/payday_lenders_up_with_fi...

Why can't these people understand that taking away consumer choice is not what America is about? If the price gets too high, the market will dry up. That's the way economics works. Unfortunately, these people want the government to decide what everything should cost. Hey wait... doesn't that sound familiar... seems like I heard about that in the '80s... oh yeah, they called it the USSR...

It's obvious that the Government doesn't want to acknowledge the need for financial options for families, especially in states which are adopting new "nanny legislation" which limits consumer choice regarding small, short-term loans. The fact is that limiting financial options does nothing but handicap families when hardships and emergencies occur.

The Urban Institute put together a great report that gives new perspective to the plight of average citizens. Please take a few moments to look at some of the important points discussed in it.

http://www.urban.org/UploadedPDF/411734_enabling_families.pdf

Unfortunately for many Ohioans, when the Governor was asked about this report yesterday at a news conference, he completely blew it off.

Is Governor Strickland in any way concerned about the truth, or is he too caught up in justifying his legislation to care about the financial needs of everyday Ohians?

This report is only a drop in the bucket. The underlying fact is that consumers deserve the freedom to choose for themselves what financial options best meet their needs.

-Jonas

Urban Institute report recommends better disclosures and increased competition to protect consumers

WASHINGTON--A new report by the Urban Institute finds that if payday advances are eliminated they "could be replaced by alternatives that make families even worse off."

In "Enabling Families to Weather Emergencies and Develop the Role of Assets," by Signe-Mary McKernan and Caroline Ratcliffe, the researchers find that low-income working families need access to small loans, such as payday advances, to help weather bad patches.

Instead of regulating prices charged on small, short-term loans, the authors argue that increasing competition will drive prices down. They express concern that regulating prices "would make fewer small, short-term loans available" and suggest that prices can be driven down, not by setting rates, but by "regulating disclosures; requiring licensing, reporting, and examinations; and creating incentives for financial institutions to provide small loan services."

"The Urban Institute understands that eliminating payday advances is not in the best interest of working families," said D. Lynn DeVault, president, Community Financial Services Association of America. "Its recommendations ensure that consumers would be aware of all of the fees associated with a credit product so they can compare their alternatives and make an educated decision based on what is best for them."

Specific policy recommendations in the Urban Institute report:

Disclosures. Regulate standard, clear, and timely disclosures of the total loan cost so consumers know their full obligation and can easily compare what various lenders charge for loans...Stating the fee as a dollar amount instead of or in addition to the annual percentage rate (APR) may be easier for consumers to understand on short-term loans.