payday lending

Patrick McHenry goes swimming with the loan sharks

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Proving that weasels can swim if the mood hits them:

If you ever harbor any questions as to what Trumpism looks like in all of its corrupt, dog-eat-dog, predatory splendor, there are two classic examples from our nation’s capital today to jog your memory.

Exhibit One is the laughably entitled “Protecting Consumers’ Access to Credit Act of 2017” — a bill on which the House of Representatives is scheduled to vote today at the behest of its chief sponsor, North Carolina congressman Patrick McHenry. As you probably surmised, the measure has nothing to do with protecting consumers and is instead a blatant attempt by the payday lending industry’s favorite congressman to revive the discredited and predatory practice nationwide.

Just to give you an idea of the level of corruption that creeps in with some of these "career" lawmakers, McHenry receives around $100,000 from the payday lending industry every election cycle. They may not always be his top contributors, but they are as reliable as the sun coming up every morning. This pay-to-play nonsense is so blatant it has sparked more than one formal complaint filed with the Office of Congressional Ethics:

The enemy at home: Payday lenders and the military

Swimming in shark-infested waters:

Among other protections, the act bans members of the military from being charged more than 36 percent in annual interest on certain consumer loans. Payday, auto title and tax refund-anticipation loans are among those covered by the cap.

But attorneys general and regulators say lenders have used loopholes in the act to prey on members of the military. Richard Cordray, director of the Consumer Financial Protection Bureau, a federal regulator, in September said some lenders lurk just outside of military bases to offer loans that fall just beyond the act's limits.

One more issue that sets Democrats apart from Republicans, especially here in NC. Republicans don't think it's their responsibility to "intervene" in a "business arrangement" between two willing entities, even if that arrangement is fraudulent and even if the victim has already put his/her life on the line for the country, day after bloody day, for years. There are a lot of disgusting things associated with the NC GOP's mismanagement of our state, but this one is easily in the top five.

Black Backs the Bad Guys

Jim Black (D),leader of the NC House, apparently finds it near impossible to stay out of trouble. While Atty. General Roy Cooper (D) was trying to shut down "payday lenders", Black and another NC House Democrat were taking more than $10,000 each from the lenders.

In case you didn't know, a payday lender is the same as a check-cashing service is the same as a legal loanshark. You bring them proof that you've got a job, and they'll give you a 30-day loan to cover you until your next paycheck. The problem is the interest rate. If you annualize the interest you pay on the short-term loan, the rates are outrageous -- I've heard 200% to 400%. Paying this kind of interest while pre-spending your next paycheck is a quick way into bankruptcy for many. Meanwhile, many banks and credit unions quietly offer the same service at much more reasonable rates. "Payday" = predatory.

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