The Payday Lender Senator: Corker of Tennessee
Thursday, March 11, 2010
Having received thousands of dollars in contributions from the $6.5 billion-a-year payday lending industry, U.S. Senator Bob Corker (R-Tennessee) has worked to keep payday lenders out of new legislation that seeks to crack down on the financial industry.
The Senate is considering the creation of a new consumer protection agency that could go after debt collectors and other predatory financial companies, but not businesses that issue short-term, high interest loans to individuals short on cash before their next paycheck. The payday loan industry was a part of the new plan until Corker convinced Senator Christopher Dodd (D-Connecticut), chairman of the Senate Banking Committee, to water down the language affecting companies like Check Into Cash.
That business was founded by W. Allan Jones of Tennessee, a longtime friend and financial supporter of Corker. Check Into Cash is the country’s third-largest payday-lending chain. Jones, his relatives and employees have given $31,000 to Corker since 2001.
Senator Richard Durbin (D-Illinois) is pushing legislation to cap the annual interest rate for payday loans at 36%. The typical current rate is 421%.
-Noel Brinkerhoff
Corker Shaping Payday Loan Rules in Financial Reform Package (by Dave Flessner, Chattanooga Times Free Press)
A Consumer Bill Gives Exemption on Payday Loans (by Sewell Chan, New York Times)
Senator Corker Donor Could Benefit From Payday-Lender Exemption (by Jonathan D. Salant and Phil Mattingly, Bloomberg)
Senators Owned Stock in Bailed-Out Banks (by Noel Brinkerhoff, AllGov)
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