COLUMBUS, Ohio — Arizona is not alone in holding a referendum on payday loans next Tuesday but unlike the Grand Canyon state, the Ohio credit union lobby has largely taken a hands-off approach.
"This is an issue that does not affect Ohio credit unions and therefore the league is not taking a position on it," explained John Kozlowski, general counsel of the Ohio Credit Union System, relating a view which contrasts to its Arizona counterpart actively involved in trying to defeat a payday ballot proposition..
The Arizona campaign to defeat a Prop 200 which would lift predatory rates to levels favored by the payday lobby using a $12 million ad blitz has the backing of the Arizona Credit Union System along with the state's Democratic governor, Janet Napolitano, and Attorney General Terry Goddard.
In both Ohio and Arizona, the North Carolina-based Center for Responsible Lending, an activist consumer group, has helped coordinate rejection of Prop 200 and a "Yes" vote on Ohio's Item 5, which would overturn a bill in the Ohio legislature allowing the predatory rates above 391%.
In a notice to its CU members, the Ohio league explained that "simply put, Issue 5 is a referendum to determine if the State of Ohio should continue to allow short-term loans up to $800 at 391% APR, or establish short-term loans up to $500 at 28% APR. If you are in favor of 391% APR, vote "NO." If you are in favor of 28% APR, vote "YES."
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