With the housing problems and sub-prime mortgages dominating the news, there are now other business sectors coming into the spotlight for preying on consumers.

In Ohio, we know all to well that our State legislature has failed the citizens.  That can be found in the predatory lending laws Cleveland enacted that were struck down by the State of Ohio.  Here’s some other examples of Republican friendly laws protecting and allowing businesses to prey on Ohio citizens:

Payday lending is big business.  An article in the Cleveland Plain Dealer noted that there were more Payday lending businesses then McDonald’s, Burger King, and Wendy’s combined.  That’s huge considering Payday lenders are permitted to charge fees and interest rates that can reach nearly 390%.

Then we have title loans, which are unregulated or regulated so poorly that they share the same characteristics as Payday lenders.  These title loans are often provided for 50% of the value of a vehicle and are required to be paid back in full within sixty days.  Just like Payday loans, the interest and fees on title loans often exceed 100%.  When the borrower is unable to pay for the loan, the car is taken and auctioned off.  To learn more about title loans, please go here.

The problem with these types of businesses is that they are largely unregulated and operate under the radar.  And lobbying efforts by these lenders has helped them squash legislation that would regulate them and require reasonable fees and interest rates.  In South Dakota, for example, a bill to regulate Payday loans was struck down 10-2.  The Republican Governor of South Dakota, Mike Rounds, opposes limiting caps on Payday loans to 36%.  His administration believes people should have free choice to get a Payday loan with an interest rate of 400%.

The sad reality is that preying on the poor is big business.  This big business has allowed Payday lenders to expand to multiple locations within small cities.  In Ohio, these lenders have crept into the suburbs as well and they continue to spread like cancer through financially ravaged cities.

It’s really disgusting that some elected officials are so business friendly that they ignore their most vulnerable citizens.  But then again these politicians, and some seeking election, will stop at nothing to accept campaign contributions from such unscrupulous lenders.  Take a look at John Rabenold, a Republican seeking election in Ohio’s 35th district.  His opponent, Ron Maag, is blasting Rabenold for accepting $100,000 in contributions from Payday lenders.  But that’s not it.  Rabenold works as a lobbyist for the company that operates Check ‘n Go.

It’s truly sad that some of those running for office have credentials that include lobbying for companies that prey on the unfortunate.  As citizens, should we vote for lobbyists and give them the power to create and enact laws?  I think not.

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