Well, heâ€™s at it again. Iâ€™d forgotten all about adding Thomas Suddes to the Payday Loan Opponent Dunk Tank, but given his clownish behavior, he certainly belongs there. Sudden just canâ€™t stand the fact that he isnâ€™t smarter than other people â€“ namely, people who recognize that when THEY have a need for short-term credit, and THEY want payday loans.
See, Suddes is one of those government paternalists who thinks he and the government should determine what people should do when they need short-term credit. When the OH legislature put a cap of 28% APR on payday loans last year, payday lenders were encouraged to find different ways to lend to customers.
So they did. They now operate under the Small Loan Act and Second Mortgage Act.
But Suddes and his raucous band of jesters, like Rep. Matt Lundy and COOHIO Executive Director Bill â€œI pay myself six figuresâ€ Faith, call this a â€œloopholeâ€.
Itâ€™s not a loophole. The lenders are operating strictly under Ohio law.
Even more amazing â€“ GASP â€“ people are still using these loans! Why? Because short term credit is limited.
Suddes, however, conveniently fails to mention this in his latest lunatic rant. Has he ever once considered that people who use these loans know exactly what they are doing? Has he considered that just because the ballot initiative to overturn the job-killing HB 545 last year has nothing to do with demand? Or that the vast majority of voters have no idea what a payday loan even is because theyâ€™ve never needed one?
And Suddes blathers on and on without even stating the facts correctly.
Suddes says lenders are collecting APRâ€™s of 432% and 680% under the Small Loan and Mortage Acts. FALSE. They collect 28% APR, plus tiny origination fees.
But thereâ€™s some hope, this time Suddes actually provides the lenderâ€™s side of the story. This is a decided switch in his usual illogical and poorly conceived babblings about the industry.
Then again, he accuses the lenders of hiring lobbyists to help their cause. Well, why shouldnâ€™t they? After all, the opponents have their lobbyists.
Oh well, hope springs eternal. Suddesâ€™ rant has an edge of resignation to it. Letâ€™s hope for the sake of Oho consumers, who have clearly demonstrated that they want payday loans, that Lundy has come to his senses and withdraws his foolish bill.