Consumed by payday loans: Calif. legislators offer haven for lenders deemed 'predatory'

[Newsjock]

http://www.insidebayarea.com/politics-government/ci_19227618

Facing government crackdowns around the country, payday lenders are thriving in lightly regulated California, where they lure hundreds of thousands of desperate borrowers a year despite punishing, triple-digit interest rates.

Seventeen states and the U.S. military have effectively banned payday loans, which attract low-income borrowers who need a cash advance on paychecks. Georgia has declared payday lending to be felony racketeering. But in California, payday storefronts outnumber Starbucks coffeehouses.

... A Bay Area News Group investigation shows payday lobbyists are pumping increasing amounts of contributions into campaign coffers, targeting lawmakers with low-income constituents who use payday loans. And some of the biggest recipients of that money are now backing an industry-friendly bill that would boost loan amounts and fees, fueling the lenders' bottom lines while driving many recession-battered Californians deeper into debt.

"There's a crackdown going on in all the rest of the states, and payday lenders are trying to figure out how to offset the lost revenue," said Uriah King, vice president of state policy for the nonprofit Center for Responsible Lending. The lenders, he said, have decided "to make up the difference on the backs of struggling Californians."

[annm4peace]

1. anyone have a list or link of these CA lawmakers ?

[Newsjock]

13. Top 20 recipients (19 D, 1 R) from payday lenders in Calif. legislature, 2003-present

http://www.mercurynews.com/portlet/article/html/imageDisplay.jsp?contentItemRelationshipId=4050658

Senate:
Ron Calderon, D-Montebello $50,000
Lou Correa, D-Santa Ana $42,300
Alex Padilla, D-Van Nuys $41,950
Ted Lieu, D-Redondo Beach $38,400
Gloria Negrete McLeod, D-Montclair $37,789
Kevin De Leon, D-Los Angeles $36,333
Leland Yee, D-San Francisco $30,100
Darrell Steinberg, D-Sacramento $20,008

Assembly:
Charles Calderon, D-City of Industry $31,450
Alberto Torrico, D-Fremont $28,000
John Perez, D-Los Angeles $27,694
Tony Mendoza, D-Norwalk $23,500
Fiona Ma, D-San Francisco $23,100
Felipe Fuentes, D-Arleta $20,500
Jose Solorio, D-Anaheim $19,000
Hector De La Torre, D-South Gate $18,000
Mary Hayashi, D-Hayward $16,300
Joe Coto, D-San Jose $16,200
Ricardo Lara, D-South Gate $16,200
Mike Villines, R-Fresno $15,750

[NuttyFluffers]

15. most excellent. i have letters to write now...

Usury is something to be destroyed upon sight with extreme prejudice. Accept no substitutes, compromises, or quarter.

[SteveM]

2. You... you mean they passed up Texas?!! Jeez, we're falling behind.nt

[justabob]

5. my first thought as well nt

[Marazinia]

3. They are predatory

But they're the symptom, not the disease. I've had to use payday loans for car repairs and other emergency expenditures in the past and it was a struggle staying on top of repayment until I caught back up. What would I have done if I hadn't had access to those loans? I would have been fired from my job. I'm not saying payday companies are good, they're making a fortune off the poorest of the working poor, what I'm saying is, the working poor should earn enough to never legitimately need a payday loan.

[abelenkpe]

4. +1000 nt

[jtuck004]

6. +1000 "the working poor should earn enough to never legitimately need a payday loan"

That's what we ought to focus on, instead of putting people back in poverty with our "austerity".

If you get a chance check out "Broke, USA: From Pawnshops to Poverty, Inc. - How the Working Poor Became Big Business", here - was in our library. Eye opening.

[Marazinia]

14. Thanks for the link, I will!

[smaug]

7. Exactly

These are necessary and will be necessary until the balance of economic power is restored in this country; a large part of what the Occupy movements are about.

[octothorpe]

8. Triple digit interest rates? Really?

[JoeyT]

10. Not just triple digits, almost quadruple digits.

From http://www.consumersunion.org/finance/paydayfact.htm

"Payday" loans are small, short-term loans made by check cashers or similar businesses at extremely high interest rates. Typically, a borrower writes a personal check for $100-$300, plus a fee, payable to the lender. The lender agrees hold onto the check until the borrower's next payday, usually one week to one month later, only then will the check be deposited. In return, the borrower gets cash immediately. The fees for payday loans are extremely high: up to $17.50 for every $100 borrowed(1) , up to a maximum of $300. The interest rates for such transactions are staggering: 911% for a one-week loan; 456% for a two-week loan, 212% for a one-month loan.

I never thought I'd actually read the phrase "911% interest" because I couldn't imagine anything that would pay or charge that.

[xchrom]

9. Just another example of how the ballot box is failing us. Nt

[dkf]

11. So what do people do if they can't get these loans?

[izquierdista]

12. Well, I'll be!

Something to make you proud to live in Georgia.




Uh, they do mean the state, not the country south of Russia, right?