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• R. CITY OF NORTH OLMSTED RESOLUTION NO. 2008 - 76 By: Council Members Dailey Jones, Barker, Gareau, Kearney, Mahoney, Orlowski, Ryan and Mayor O'Grady A RESOLUTION IN SUPPORT OF THE EFFORTS OF THE OHIO GENERAL ASSEMBLY TO REFORM PAYDAY LENDING IN THE STATE OF OHIO, AND DECLARING AN EMERGENCY. WHEREAS, on April 30, 2008, the Ohio House passed Substitute House Bill 545 (Sub. H.B. 545) and sent it to the Ohio Senate for its consideration, where it is currently pending; and WHEREAS, Sub H.B. 545, if passed by the Senate and signed into law by the Governor, will establish new and reasonable regulations for the payday lending industry in the State of Ohio, including establishing a cap on interest rates for such loans at 28% and the creation of a Financial Literacy Education Fund to provide valuable consumer information to Ohioans who utilize the services of payday lenders; and WHEREAS, while payday lending did not even exist in Ohio prior to 1995, the phenomenon has in the past decade grown into a multi-billion dollar industry in Ohio with more than 1500 store front locations in the State of Ohio and, according to a 2007 study, now serves more than one-half million Ohioans annually; and WHEREAS, there are more payday lending storefronts in Ohio than McDonald's, Burger King, and Wendy's combined; and WHEREAS, this industry, while meeting a legitimate business need for persons with financial credit problems or who are located in areas of Ohio where there are no neighborhood commercial banks, is also subject to potential frauds, overreaching, and other forms of predatory abuses upon the poor, the elderly and others in Ohio who are struggling with severe financial challenges in the current market economy; and WHEREAS, this Council is aware of the number of payday lending businesses that have opened up in North Olmsted over the last several years and wishes to urge the State to pass reasonable and sensible consumer legislation that will protect residents of Ohio, including those living in the City of North Olmsted, from predatory lending practices, particularly against the poor, the elderly, and other financially disadvantaged people; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NORTH OLMSTED, COUNTY OF CUYAHOGA, AND STATE OF OHIO: SECTION 1: That this Council urges the Ohio Senate to pass and the Governor to sign into law Substitute House Bill 533, and in addition supports any and all other efforts by the Ohio General Assembly to pass reasonable and sensible business and consumer legislation regulating the payday lending industry in Ohio so as to protect the poor, the elderly and other financially challenged Ohioans from predatory lending practices in this industry.