A coalition of payday lending companies in Ohio, the Reject HB 545 Committee, reportedly won grudging approval from the Attorney General today on ballot language that would partially repeal HB 545 - a law limiting interest on short term loans to 28%. Ohio Governor Ted Strickland signed HB 545 into law in June.
The AG nod allows the committee to move forward with a signature campaign. The group has until September 1 to get the 240,000 signatures needed to put the repeal language on the ballot and before the voters in November.
If not overturned, the cash advance industry will be effectively banned from doing business in Ohio. Experts say a 28% rate on a short term 14 day loan is a losing proposition.
The Committee originally asked for language totally repealing HB 545, but it was rejected. The AG's office reportedly gave approval to language repealing only section 3 of HB 545 - maximum loan amounts and maximum interest rates.
In May, a group led by Rent-A-Center (NASDAQ:RCII) retained former United States Solicitor General and constitutional law expert Theodore B. Olson to examine the constitutional implications of HB 545 (see story).
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