Pew Charitable Trust Wants to Eliminate Safety Net for Ohioans Leaving Them Dependent on the Government
Why are the Republicans Helping Them?
By Cyndy Rees
3rd Rail has learned that while common sense legislators are attempting to work out a deal that will address issues related to payday loans, such as exorbitant interest rates and pancaking loans, Pew Charitable Trust, who our sources say is funded by the Credit Unions, want all Payday Lenders put out of business.
Even when the legislature eliminates competition for the credit unions in HB123, approximately 2/3 of the consumers who use payday loans will remain unbankable. Closing this lending source will eliminate their safety net preventing them from getting short term loans for car repairs to get to work, dental and health procedures, etc.
The Republican mantra is competition and work force development. Addressing this gap should be a priority.
Without the safety net who will these individuals turn to for help? Will they have to quit their jobs? What is the economic impact on other Ohio industries?
The payday loan consumer lives pay check to pay check and works minimum wage or low wage jobs. They cannot rely on financial support from traditional banks or family members. They live on an extremely tight budget and have no means to deal with an emergency large or small.
Transportation issues are one of the top reasons why individuals who work cannot get to their job. If the Ohio legislature takes away the ability to get a "reasonable" short term loan for a car repair an individual cannot go to work. They may or may not lose their job. Loss of time at work is loss of economic growth for Ohio. The loss of a job has an economic impact on every taxpayer, as this individual will be dependent long or short term on government subsidies. Talk about a viscous cycle, try climbing out of the public assistance pancake!
While one can understand why Pew and Plunderbund would be excited about expanding the number of individuals dependent on the Government, it is baffling that the Republican legislature is in such a rush to make this happen.
HB123 in its current form eliminates access for 2/3 of payday loan consumers, taking away their safety net without addressing alternative solutions.
Perhaps a reasonable compromise is a win win for all Ohioans?