Home Virginia Politics Reining in payday and car title loans go down in flames

Reining in payday and car title loans go down in flames

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( – promoted by lowkell)

Who let these leaches in the door anyway? The bloodsuckers preying off of society’s desperate.

It was Governor Mark Warner who signed into law the Payday Loan Act in 2002.

According to a 2008 Washington Post article Kevin Hall, a Warner spokesman, said. “Governor Warner is pleased to see the legislature moving forward on additional legislation and would be supportive of a cap that is fair to working people.”

Here we are in 2011 still trying to “cap” these maggots. These predators once they get their lobby cranked up and the contributions rolling in – there is no stopping them.

It’s like trying to peel off leaches one at a time while buckets of them clamp on. The leaches come bearing gifts. It just feels so good as they slither up to suck all moral conscience from Virginia legislators.

Roanoke’s Senator John Edwards engaged me a couple years ago when I chastised him for supporting payday loans. He said Delegate Onzlee Ware had convinced him they were needed. The needy were those living paycheck to paycheck who floundered with unexpected expenses.

Edwards has been trying to rein in these unleashed parasites every since.

Every year there is a new loophole to close. Quietly this session legislators are still trying to cap car title loan maggots at 36% and rein in payday fees and charges.

Two bills failed to report out of the Senate’s Commerce and Labor committee. The vote was (4Y-10N) on both SB751 and SB752. Both bills were patroned by Hampton Democrat Mamie Locke.

The first attempted to cap motor vehicle title loans at 36% annually. The interest cap on car title loans is 22% per month on the first $700, 18% on subsequent loan balance to $1400 and 15% that exceeds $1400.

Payday loans are capped at the annual rate of 36%. Senator Locke tried to eliminate “loan fees and other charges” that payday lenders can tack on at will. That attempt sank like a stone too.

House Bill 1441 is sitting in the House Committee on Commerce in Labor that also attempts to Caps the rate of interest that may be charged on motor vehicle title loans, payday loans, and open-end credit plans at 36 percent per year. The bill was introduced by Republican Glenn Oder of Newport News. It will probably just die a quiet death with no chance of passing the Senate.

The vote on both Senate Bills 751 and 752: YEAS-Edwards, Herring, McEachin, Deeds-4.

NAYS-Saslaw, Colgan, Wampler, Norment, Stosch, Watkins, Wagner, Newman, Puckett, Puller-10.

SB1367  Democrat Dick Saslaw did introduce this bill that [gulp] allows car title lenders to make loans on vehicles registered in another state. The vote on that was 12-2 and passed successfully out of committee. (Edwards and McEachin were the only Nay votes this time.) UPDATE: Saslaw’s Bill passed the Senate this morning.

Let’s just check the contributions of say Senator Dick Saslaw (Springfield). Not surprisingly Saslaw is the King of  payday and car title loan contributors. His bill might as well be a flashing arrow pointing to him that says “Get Your Car Title Loan Here!”

Check Into Cash of Virginia contributed to Saslaw a whopping $11,000 – Advance American contribution was $4000. Community Loans of America (car title) contribution $5000. Titlemax and Cashpoint for another $3500 each and LoanMax gave $5000 – a total of $32,000 at a quick glance. This was just for 2010.

Check Into Cash contributed over $160,000 to candidates in the last five years. Community Loans $159,000, TitleMax $137,000, and Cashpoint $27,000. Sen. Saslaw is their favorite.

LoanMax is the clear winner at a whopping $760,000. The total given to candidates since 2004 with Saslaw topping their list.

Let’s face it the devil has purchased the hearts of elected officials. The demons are here to stay unless one day they have a sudden attack of religion.

  • Many major investors in payday loans come from big banks themselves. I know that Bank of New York, JP Morgan, and Bank of America all have strong relationships. Other investors are state and public employee pension funds such ad Tiaa/cref. We all know how powerful these lobbies are.  

  • blue bronc

    These are scum. While the Republicans (and unfortunately a few Dems) take the money from the toilet dwellers and refuse to limit their usurious practices, perhaps a few officers of the peace could practice some law enforcement.  Building codes need enforcement, the health departments may need to ensure no one will become too ill in the places. Check for illegal political payments, I would not like to say they would climb to the level of a bribe.  

  • There is a really good book on the subject:  SHORT CHANGED: Life on the Fringe Economy by Howard Kargar that I really recommend.  It’s a few years old (which means you will recognize all of the real estate shenanigans, although when the book was published, this was still mostly unheard of by most Americans).  What I liked about was that it not only walked you through how these places take horrible advantage (all legal) but also talked about some solutions to bring people out of the fringe economy and into more mainstream ways.  Right now, the biggest reason these places thrive is because so many people are shut out of mainstream banking (in every way, from accounts to loans) which is a HUGE issue now that our economy is no longer a cash-driven one.

  • ValerieInRke

    This was in my spam box on my webstie … “$1500 just a click away” ….

    http://no-credit-check-payday-

    The (expletive) nerve ….