Margo Hutchinson

Adv. Newswriting & Reporting

Gail Towns

10-31-08

FIVE

 

 

Issue 5 in the hands of voters November 4

By: Margo Hutchinson

 

            Election day is only a few days away and soon voters will decide on who they want in office and what issues get the ‘yes’ and ‘no’.  When it comes to the issues on the Ohio ballot, it seems like Issue 5 is one of the most prominent issues in this election.

            The House bill 545 passed a law in the summer detemining how money lending companies place interest and lend to customers.  Due to a referendum the law is placed on the 2008 voting ballot to be voted on by Ohioans. To many this bill is more of an issue and if passed it could cost around 6,000 jobs.

             12 News interviewed Bridgette Roman, Ohioans For Financial Freedom:  who told the news station "Frankly, the business model cannot work, and how do we know that? Because 150 pay day lenders have already turned in their licenses. Just last week, I talked to a woman from Stuebenville who operated five stores. She has closed her stores, turned in her license and terminated all of her employees. The business model just can't work at that kind of limit.”

            If the law is voted “no” payday lenders are able to resume to they way they do buissiness.  If voted ‘yes’ on payday lenders must abide to the law that the government had put into action.  If voted ‘yes’  lenders maximum amount to lend to client is $500  and the borrower has 30 day to repay the lender with an interest rate of 28%.   Before the  Issue 5, lenders could lend clients a maxiumum of $800 with no particular amount of day to repay the lender and a interest rate of  391% interest rate. 

            But it seems that this issue confuses more voters than anything.  Many say yes because it saves jobs and that it keeps the government out of the buissiness, but other see that payday loans cause more borrower to pay more money in the end.  To repeal a law or to keep it will be determined on election day.

http://www.youtube.com/watch?v=B28wkI0UE1c <>

http://www.youtube.com/watch?v=azPp-CC76kw < Vote Yes video