Breaking from many other Ohio religious leaders, the Ohio Christian Alliance is siding with the payday-lending industry, urging voters to reject State Issue 5.

The Christian Alliance has produced a voters guide advocating a "no" vote on the referendum and the continuation of the 391 percent annual interest rate ($15 per $100 on a two-week loan) charged by payday lenders.

In late September, leaders from the Ohio Council of Churches and those representing Catholics, Methodists and others united against the payday-lending industry, urging a "yes" vote on Issue 5.

Tom Smith of the Ohio Council of Churches said he was surprised by the Christian Alliance's stance.

"They have a lot of low-income and middle-class people who get caught in the same debt traps as we have," Smith said. "Maybe they're concerned about loss of jobs. That would be the only thing I could see they could point to."

Job loss is not mentioned in the alliance's voters guide. Instead, it says Issue 5 would eliminate a valued credit choice for Ohioans, infringe on personal privacy by requiring that borrowers' names be put into a database, and limit consumers to four payday loans a year.

Chris Long, Christian Alliance president, did not return a phone message seeking comment. The group is on the same page as other religious leaders on state Issue 6, urging a "no" vote on a plan to build a casino in southwestern Ohio.

The payday industry is trying to partially overturn House Bill 545, which adds regulations on the industry. If a majority vote "yes" on Issue 5, payday lenders would be limited to a 28 percent interest rate, or perhaps 28 percent plus a $15 origination fee under Ohio's Small Loan Act.

Payday lenders say they cannot survive under the 28 percent rate. Opponents say payday lenders trap borrowers, forcing too many to take out new loans to pay off old ones.

jsiegel@dispatch.com