ridiculously low cap will drive jobs out of Ohio and leave
low-income borrowers with less available options when facing a
Tim Miller, Communications Director, Center for Consumer
The new survey demonstrated that very few people would be
willing to carry a loan with such stringent restrictions. When
asked how much they would charge a complete stranger who wanted
to borrow $100 for two weeks, just nine percent of respondents
said $1.50 or less. Over 80% of respondents would still be
unwilling to make the loan at $15 or less, the common rate for a
payday loan of that size in Ohio.
"The reality of this ridiculously low cap is that no payday loan
business will be able to survive. It will drive jobs out of Ohio
and leave low-income borrowers with less available options when
facing a budget crunch," said Tim Miller, Communications
Director at the Center for Consumer Freedom. "This survey shows
that almost nobody would be willing to lend money at the rate
which Ohio legislators want to cap short-term loans."
Miller concluded, "If the legislature goes forward with this
misguided proposal, they will leave borrowers stranded in debt,
but with fewer and more expensive options to resolve it."
The findings are based on a telephone survey conducted among a
national probability sample of 1,004 adults comprising 500 men
and 504 women 18 years of age and older, living in private
households in the continental United States. Interviewing for
this survey took place between April 25th and April 28th, 2008.