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.
Comments
Payday Loans Stink (not verified) on Wed, 07/08/2009 - 11:20
PAYDAY LOANS STINK! The political climate is changing and their end is near. Their store fronts are becoming more and more dangerous places to work. Their disgruntled clients are getting smarter, banding together and learning how to fight back. Payday Loan companies offered some valuable service to the community, but for too long, we've been playing by the unfair rules written by these powerful companies. PAYDAYLOANSSTINK.COM welcomes them to exist, but its time that the playing field is leveled. Payday Loan companies have proliferated through intimidation and misinformation for too long. PAYDAYLOANSSTINK.COM exists to give you - the consumer & the employee - the information you need to gain the upperhand. To escape their devious cycle-of-debt trap! PAYDAYLOANSSTINK.COM invites every one affected – including employees of the industry – to join in the discussion and learn from each other.
- JUST STOP PAYING! Always remember to put a Stop Payment on your check. It forces them to stop charging interest and negotiate a payment on your terms. Not theirs!
- Did you know that by sending them a simple Cease And Desist letter by certified mail, you can get all of their harassing phone calls – to you, your work and your family - to stop?
- And did you know that many Payday Loan store fronts are blatantly breaking laws every day? That a simple letter to your City Council or your Attorney General could help to shut them down? Or even get some of your money refunded?
- THE “EPP” EXTENDED PAYMENT PLAN – Available at nearly 70% of the nation’s Payday Loan stores, but yet you are never told about the EPP - “Right now your Payday Loan store is offering a three-month, interest-free payment plan for anyone who has a current loan! Save hundreds of dollars in interest. That’s right! Whether it’s Advance America, Check Into Cash, Quik Cash, Check N Go or some other Payday Cash Advance company, just tell them you are tired of paying interest and would like your FREE EPP. The Extended Payment Plan. Ask for it today before it’s gone!”
PAYDAYLOANSTINK.COM thanks you for taking the time to read this quick comment. Our new site has much more detailed information available regarding the topics above. As well as – “Small Claims”, “BBB & FTC Complaints”, “Arbitration Agreements”, Community Forums & more!
Lucas M. (not verified) on Wed, 07/15/2009 - 16:58
Look, we just had 8 years of the politics of exclusion, which has only created deeper problems. Lasting political solutions come from inclusion, not from grandstanding at one political extreme. Gutierrez is trying to push legislation on payday lending with both sides of the debate at the table. Anyone opposed to this need only remember the dark days of CheneyBush, where the table had only one seat, for someone that wasn't you.
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