Ohio attorney general rebuffs payday loan industry

Ohio attorney general strikes down payday loan industry attempt to get law overturned.

COLUMBUS, Ohio (AP) -- Ohio Attorney General Nancy Hardin Rogers has refused to approve petition language proposed by payday lenders seeking to overturn a law that tightens industry regulations.

Rogers said Thursday the language payday lenders want to use on forms for gathering voter signatures toward getting the repeal issue on the ballot is not fair and truthful.

Rogers noted that the summary of the proposal that lenders want to put in front of potential petition signers does not include the law's most important aspect of capping annual interest rates at 28 percent.

Gov. Ted Strickland signed a bill in early June that limits borrowers to four short-term loans a year capped at the 28 percent rate. Payday lenders had charged about $15 for every $100 borrowed on a two-week loan, which worked out to an annual interest rate of 391 percent.

The industry will have to get Rogers' approval of new language before attempting to gather the 241,366 signatures necessary to place the effort on the November ballot.

Source: http://biz.yahoo.com/ap/080620/oh_payday_loans_ballot.html?.v=1