By William Gavin in Open Secrets. Here is an excerpt:
Members of Congress currently on the Senate Banking, Housing and Urban Affairs Committee and the House Committee on Financial Services collectively received over $3.4 million from the payday lending industry during their time in Congress, according to OpenSecrets data. Of the 78 senators and representatives on the committees, just 11 received no contributions from payday lending members or affiliates.
Both committees are tasked with regulating the payday lending industry, and are considering legislation to do just that. The Veterans and Consumers Fair Credit Act, which would cap the interest rate on extensions of consumer credit at 36%, was introduced in the Senate Banking Committee by Sen. Jack Reed (D-RI) in July 2021, and reintroduced in the House Committee on Financial Services in November 2021 by Reps. Jesus Garcia (D-IL) and Glenn Grothman (R-WI).
As of Feb. 2021, 19 states and the District of Columbia have legislation capping interest rates at 36%. Watchdog organization Accountable.US said the legislation would help fight predatory lenders that “target communities of color” and benefit Black Americans, citing “nearly 190 consumer, civil rights, and other public interest groups.” Several members of the committee who have taken large amounts of money from the industry have opposed an interest rate cap, according to Accountable.US.
Read the full story here. Also, visit the main Democracy Chronicles section on American Democracy, our section on Money Politics, or our articles on Political Lobbying.
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