After much haranguing and negotiating in Columbus, the legislature passed a tougher-than-expected crackdown on payday lenders. Now the industry, in an effort to save itself in Ohio, has put the new law on the ballot.

We urge voters to say no to the payday lenders, and yes to Issue 5. A yes vote upholds the payday-lending law, which imposes a 28 percent annual percentage rate cap on payday loans and protects consumers. A no vote would allow lenders to continue to charge an obscene 391 percent on payday loans — typically $15 per $100 borrowed on a two-week loan –— which traps the poor and middle class alike in an endless cycle of debt.

The law also would limit a borrower to four loans per year; according to the Ohio Coalition for Responsible Lending, the average borrower takes out 13 loans per year. This is evidence that consumers, poor and middle-income alike, get trapped and end up paying more in fees than they borrowed in the first place.

Responsible leaders across the state support the payday-lending law; for instance, Democrat Richard Cordray and Republican Mike Crites, competing to become state attorney general, came together to support Issue 5.

In approving these reforms, the Republican-controlled legislature and Democratic Gov. Ted Strickland sent a bipartisan message to payday lenders: Modern-day usury is no longer allowed.

Just on Wednesday, the left-leaning Policy Matters Ohio released a survey that asked financial counselors about payday lending. The counselors “are extremely concerned about the use of payday loans for low- and moderate-income families. Counselors almost universally indicated that they would not recommend use of a payday loan to their clients.”

We have our concerns about the payday lending bill. We’re worried the person who uses a payday loan for a quick fix — such as fixing a car — might not be able to get that money. We hope others will be able to offer services similar to payday lenders if they indeed are forced to close down across the state. Credit unions and nonprofits might be able to fill the void.

Cracking down on payday lenders eliminates their ability to charge outrageous rates that trap Ohioans in debt. But it does not eliminate the need for short-term loans.

That said, Ohio would survive without payday lenders, who were allowed into the state only after the legislature wrote a law for them in 1995. In the next 13 years, payday-lending storefronts have popped up like dandelions: more than 1,600 of them, according to Policy Matters Ohio.

To be clear, a no vote supports the payday lenders and their sky-high rates. A yes vote supports borrowers. We strongly urge the latter.

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