COLUMBUS, OHIO (CN) – A group that opposes a state law that reduced interest charges on short-term “payday loans” from 391% to 28% has sued the California political consultants it hired to collect signatures for a referendum. The Reject HB 545 Committee says Arno Political Consultants failed to register properly in Ohio, invalidating 85,000 signatures despite collecting $439,000 in fees.
Ohio enacted HB 545 in June. Previously, payday lenders could charge $15 per $100 loaned on 2-week loans – an annual percentage rate of 391%. HB 545 capped interest at 28%, reduced the maximum payday loan from $800 to $500, and extended the payment period from 14 to 31 days.
The Reject HB 545 Committee hired the Rancho Cordova, Calif.-based company to collect signatures to get a referendum overturning the bill on the ballot. The committee says Arno screwed up its paperwork, or failed to submit it, invalidating 85,000 signatures, and costing the committee the $439,000 it paid.
The Reject HB 545 Committee claims the bill will cost Ohio jobs.
The committee is represented in Franklin County Court by William Todd with Benesch, Friedlander, Coplan.