Federal Payday Loan Legislation

Fredreka Schouten at USAToday.com has an informative article describing the payday loan industry’s lobbying efforts in Washington DC. They reported that CFSA, The Community Financial Services Association, representing roughly half of all brick-n-mortar payday loan operators spent $2,6000,000 in 2009 compared to The US Chamber of Commerce at $3,000,000.

USAToday.com also mentions OLA, The Online Lenders Association, and their efforts to lobby on behalf of Internet payday loan lenders in Washington DC as well.

USAToday.com further reports, “A bill that recently passed the Senate banking committee could shield some of the industry from the new agency’s enforcement powers, but a House-passed version would make the lenders subject to full enforcement by the proposed Consumer Financial Protection Agency.

The fight now moves to the full Senate, which may take up the bill later this week.”

With an average loan to payday loan consumers approaching $345, it seems crazy to us for the crew in D.C to be focused on the payday loan industry. After all, it’s not as if the payday loan industry contributed to the “too big to fail” mantra currently consuming Big Brother.

Read the entire USAToday.com article here.

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