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July 08, 2008
Items from the predatory lending blotter
Bad news from the Senate floor: Senator Blanche Lincoln (D-AR) is today attempting to add pro-predatory lending language to the mortgage reform and foreclosure prevention legislation currently on the Senate floor. Her proposal would serve to preempt her own state's constitutional usury (interest rate) ceiling. A broad coalition of consumer and civil rights groups has defeated her wrongheaded efforts in past Congresses. The proposal is backed generally by used car dealers and finance companies and pretty much all Arkansas politicians of either stripe although it has been defeated by the actual people of Arkansas each time it's been brought to the ballot. That's not surprising, since the amendment would strip Arkansas citizens of their direct voice in the interest rates to which they are exposed. UPDATE: Blog opposing Lincoln effort from the Arkansas Times newspaper.Good news from Oregon: The Oregonian newspaper reports that Oregon's payday lenders all but gone. Oregon's payday lending industry shrank dramatically in the year since the state cracked down on the short-term lenders' soaring interest rates. Three out of four Oregon payday lending stores have closed, and most stores still operating depend on check cashing and other money services to stay in business. Meanwhile, over in Ohio: Payday lenders take Ohio ballot battle to court (Associated Press via CNN): Payday lenders fighting to repeal a statewide crackdown on their industry on Monday sued two of Ohio's top elected officials, arguing that repeated hurdles the lenders have faced in getting the issue on the November ballot are unconstitutional. We doubt they have a chance with this desperate toss. Don't let the door hit you on the way out, guys. Previous blog on passage of Ohio payday loan ban. UPDATE LATER THAT SAME DAY: A judge has thrown out the pay day lenders' request for a temporary restraining order that would have allowed them to start collecting signatures.
Posted by Ed Mierzwinski at July 8, 2008 02:36 PM
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