Rep. Luis Gutierrez has spoken at length about the clout the payday loan industry wields on Capitol Hill. In fact, during a hearing before the House Committee on Financial Services (which he chairs), the Chicago Democrat admitted that implementing a 36 percent cap on all consumer credit transactions is "not possible" because of the industry's lobbying power. He further told the AP, "While they may not be JP Morgan Chase or Bank of America, they've very powerful. Their influence should not be underestimated."  The New York Times and Stephen Colbert, among others, took Gutierrez to task; after all, it was he who ushered a neutered payday loan reform bill through his committee while simultaneously accepting at least $29,900 from the payday loan industry last election cycle.

Gutierrez' position frustrated us as well. In April, we wrote that he should reject funds from payday lobbyists as he tries to reform their practices:

If Gutierrez really believes that payday loans should be banned (as he himself said in the committee hearing on this bill), then he should lead by example.  Maybe then other legislators would be emboldened to stand up and, gradually, the industry's influence might wane.

Now, according to Chicago Public Radio's Chip Mitchell (who has done some solid reporting on the issue), the congressman has agreed to do just that. After attending a recent Gutierrez fundraiser whose list of hosts included several payday lending lobbyists, the reporter asked the congressman's office to explain their presence. Here was their response:

WBEZ has been asking for months to speak with Gutiérrez about his campaign funding from payday lenders. On Wednesday, one of his aides sent some written responses. The congressman says no contributions have influenced the payday-lending legislation. He points out the industry’s criticism of the bill. And he offers this quote: “I want to avoid even the appearance that there is a conflict, so I will not be accepting any contributions from the payday loan industry.”

Chalk this up as a small step in the right direction.