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admin - October 19th, 2008.
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A Cleveland research group says that Ohioans who try to help people drowning in debt generally see payday loans as part of the problem.
Issue 5 is about whether to keep Ohio’s new interest rate cap on payday lending or to repeal the law. Industry officials say they can’t do business in the state under the cap.
The nonprofit research group Policy Matters Ohio is putting its support behind efforts to keep new restrictions on payday lenders in place, citing a new survey of Ohio credit counselors who say the loans they issue create a cycle of debt for their clients.
Supporters of Proposition 200 say the measure means real reform for the payday loan industry in Arizona, but opponents claim the measure will trap borrowers in a never-ending cycle of debt.
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