In Montgomery County, 17,015 residents last year were caught in a web of dependence on payday lenders that cost them $17,026,726 in loan fees, according to a report released Wednesday.
"Borrowers end up owing their soul to the neighborhood payday lending store," said Tom Allio, chairman of Ohio Coalition for Responsible Lending, the group that issued the report.
"Borrowers end up owing their soul to the neighborhood payday lending store," said Tom Allio, chairman of Ohio Coalition for Responsible Lending, the group that issued the report.
Montgomery County ranked fourth in the state in both loan fees and number of "trapped borrowers" — those who took out five or more high-interest payday loans in a year, according to the report.
Statewide, the number of payday lending outlets exploded from 107 in 1996 to 1,554 last year, according to the report.
Darryl Dever, lobbyist for the Ohio Financial Service Centers Association, questioned how the coalition came up with its data on fees and borrowers. "They're making this stuff up," Dever charged.
The report used public data from four Ohio payday lenders — Advance America, Cash America, ACE Cash Express and QC Holdings — to build a model to come up with the data, the coalition said. The companies make up 31 percent of the Ohio payday lending market, according to the coalition.
"We don't make stuff up," said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, part of the responsible lending coalition.
The coalition and Dever back separate bills to address payday lending.
The coalition supports legislation sponsored by Reps. Bill Batchelder, R-Medina, and Bob Hagan, D-Youngstown, that would cap annual interest rates at 36 percent. Annual rates now can reach 391 percent.
Dever said this bill would put payday lenders out of business. Instead, he endorses legislation sponsored by Reps. Ross McGregor, R-Springfield, and Matt Lundy, D-Elyria, that would provide an extended payment plan for borrowers who have trouble paying loans back on time.
House Speaker Jon Husted, R-Kettering, has said he expects the legislature to take some action on payday lending, but he still is reviewing the proposals, said Karen Tabor, Husted's spokeswoman.
Gov. Ted Strickland said he supports a legislative solution including a cap on interest rates, according to his spokesman Keith Dailey.
Statewide, the number of payday lending outlets exploded from 107 in 1996 to 1,554 last year, according to the report.
Darryl Dever, lobbyist for the Ohio Financial Service Centers Association, questioned how the coalition came up with its data on fees and borrowers. "They're making this stuff up," Dever charged.
The report used public data from four Ohio payday lenders — Advance America, Cash America, ACE Cash Express and QC Holdings — to build a model to come up with the data, the coalition said. The companies make up 31 percent of the Ohio payday lending market, according to the coalition.
"We don't make stuff up," said Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, part of the responsible lending coalition.
The coalition and Dever back separate bills to address payday lending.
The coalition supports legislation sponsored by Reps. Bill Batchelder, R-Medina, and Bob Hagan, D-Youngstown, that would cap annual interest rates at 36 percent. Annual rates now can reach 391 percent.
Dever said this bill would put payday lenders out of business. Instead, he endorses legislation sponsored by Reps. Ross McGregor, R-Springfield, and Matt Lundy, D-Elyria, that would provide an extended payment plan for borrowers who have trouble paying loans back on time.
House Speaker Jon Husted, R-Kettering, has said he expects the legislature to take some action on payday lending, but he still is reviewing the proposals, said Karen Tabor, Husted's spokeswoman.
Gov. Ted Strickland said he supports a legislative solution including a cap on interest rates, according to his spokesman Keith Dailey.
