Ohio activist says payday industry misleading voters

6/18/2008

COLUMBUS, Ohio A consumer activist says the payday loan industry is misleading voters in an effort to repeal a new law that puts restrictions on lenders.

Payday lenders are trying to collect enough signatures to force a vote on the issue in November.

Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, says a summary of the proposed ballot issue doesn't mention that the new law caps annual interest rates at 28 percent. It also doesn't mention that payday lenders had been able to charge rates that worked out to 391 percent.

Kim Norris, spokeswoman for the ballot issue's supporters, says the lenders are confident the Ohio attorney general's office will approve the proposed ballot as it is written.