Payday Lenders' Campaign Contributions Carving Out Exemptions in CFPA
| By Ohio Consumer Advocate - Mar 11, 2010 10:26:35 PM ET |
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Categories: Consumer and Worker Protection, Social Justice, News, Opinion, Front Page
Categories: Consumer and Worker Protection, Social Justice, News, Opinion, Front Page
Two pieces in the last couple of days have highlighted the campaign contributions from payday lenders' that appear to have helped the industry carve out an exemption for themselves in financial reform legislation being negotiated in the United States Senate. In an article in the New York Times on Tuesday, March 9th, it would appear that Senator Bob Corker (despite assertions to the contrary) is being heavily influenced in his thinking by payday lenders in his home state of Tennessee.
From the Times:
"The Senate Banking Committee’s chairman, Christopher J. Dodd, Democrat of Connecticut, proposed legislation in November that would give a new consumer protection agency the power to write and enforce rules governing payday lenders, debt collectors and other financial companies that are not part of banks."
"Late last month, Mr. Corker pressed Mr. Dodd to scale back substantially the power that the consumer protection agency would have over such companies, according to three people involved in the talks."
So, why might Senator Corker be pressing to scale back the CFPA's power over non-bank financial institutions? In all likelihood it's because Cleveland, Tennessee is home to Check into Cash, one of the nation's largest predatory payday lenders and long-time contributor to Senator Corker's political campaigns.
"Mr. Jones, his relatives and his employees have given money to Mr. Dodd, Mr. Shelby and other members of the Banking Committee, but have been particularly active donors to Mr. Corker, records show. They have contributed at least $31,000 to his campaigns since 2001, when he was running for mayor of Chattanooga."
"In 1999, Mr. Jones and other payday lenders started the Community Financial Services Association to lobby against regulation. The group’s political action committee gave $1,000 to Mr. Corker last year."
It's unfortunate that just one Senator on the Senate Banking Committee is able to wield such power in favor of moneyed interests in his backyard. Predatory payday lenders are capitalizing on the financial crisis in which we find ourselves, bilking hard working low-income Ohioans out of millions upon millions of dollars. It would be a shame for our lawmakers to pass up an opportunity to regulate those industries that have played a role in bringing our nation's economy to it's knees. Especially for $31,000 in campaign cash...
You can read the entire New York Times piece here: http://www.nytimes.com/2010/03/10/business/10regulate.html?dbk
From the Times:
"The Senate Banking Committee’s chairman, Christopher J. Dodd, Democrat of Connecticut, proposed legislation in November that would give a new consumer protection agency the power to write and enforce rules governing payday lenders, debt collectors and other financial companies that are not part of banks."
"Late last month, Mr. Corker pressed Mr. Dodd to scale back substantially the power that the consumer protection agency would have over such companies, according to three people involved in the talks."
So, why might Senator Corker be pressing to scale back the CFPA's power over non-bank financial institutions? In all likelihood it's because Cleveland, Tennessee is home to Check into Cash, one of the nation's largest predatory payday lenders and long-time contributor to Senator Corker's political campaigns.
"Mr. Jones, his relatives and his employees have given money to Mr. Dodd, Mr. Shelby and other members of the Banking Committee, but have been particularly active donors to Mr. Corker, records show. They have contributed at least $31,000 to his campaigns since 2001, when he was running for mayor of Chattanooga."
"In 1999, Mr. Jones and other payday lenders started the Community Financial Services Association to lobby against regulation. The group’s political action committee gave $1,000 to Mr. Corker last year."
It's unfortunate that just one Senator on the Senate Banking Committee is able to wield such power in favor of moneyed interests in his backyard. Predatory payday lenders are capitalizing on the financial crisis in which we find ourselves, bilking hard working low-income Ohioans out of millions upon millions of dollars. It would be a shame for our lawmakers to pass up an opportunity to regulate those industries that have played a role in bringing our nation's economy to it's knees. Especially for $31,000 in campaign cash...
You can read the entire New York Times piece here: http://www.nytimes.com/2010/03/10/business/10regulate.html?dbk
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