Payday Lending & Ohio Astroturf Think payday lending and Astroturf don't have anything in common? Think again!
According to SourceWatch.org, Astroturf "refers to apparently grassroots-based citizen groups or coalitions that are primarily conceived, created and/or funded by corporations, industry trade associations, political interests or public relations firms."
The payday lobby has installed their Astroturf in both Ohio and Arizona, two states where consumer protections are under siege by an industry trying to preserve their incredible profit margins. An article in today's MarketWatch, there are two Astroturf organizations, the Consumer Rights League and Arizonians for Financial Freedom, both of whom are funded by the payday lending industry and its lobbying association, the Community Financial Services Association (CFSA). The payday lobby has already spent $9 million in their efforts to sustain their current practice of charging 400% interest.
"The Consumer Rights League, a fake grassroots -- or 'Astroturf' -- organization based in Washington, D.C. and backed by payday lending interests, paid the $100 fee to the Secretary of State to have their statement included in the official Voter Pamphlet," stated David Higuera, political director of Arizonans for Responsible Lending, No on 200. "They join another industry 'turf' group, Arizonans for Financial Reform -- Yes on 200 committee -- which is simply a Phoenix-based front group for the billion dollar out-of-state payday lenders, eager to keep exploiting Arizonans."
Their counterpart in Ohio is the Astroturf group Ohioans for Financial Freedom. Made up of attorneys and lobbyists from out-of-state and few citizens (if any), Ohioans for Financial Freedom is attempting to overturn one of the best consumer protection laws in the country. Indeed, Ohioans for Financial Freedom has been "conceived, created and funded" by the payday lenders and their industry association, CFSA. They too want to maintain the status quo at 391% APR interest.
You can read more about the "Astroturf Sharks" in Arizona here: http://www.marketwatch.com/news/story/payday-lenders-get-turf-toe/story.aspx?guid={2F7AF8F9-D8FE-414F-B8A5-6F7F7AD7F6DA}&dist=hppr
The payday lobby stationed in Ohio has already done a pretty good job of trying to ensure confusion in November, but it can't be clearer:
VOTE YES ON ISSUE 5 for LOWER INTEREST RATES!
VOTE YES ON ISSUE 5 to END 391% APR INTEREST!
VOTE YES ON ISSUE 5 to END the DEBT TRAP for OHIO CONSUMERS!
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