My Thoughts About This Article: Yes paydayloans might be "bad" for many people have, but in truth h...

1. Payday lenders throw millions at powerful politicians to get
their way
My Thoughts About This Article:
Yes paydayloans might be "bad" for many people have, but in truth here is the only alternative. So
can you ask them to pay an insane interest or somewhat the debtor get without food or heat for the
week? From a legal viewpoint they're having not a problem although for me it is a call that is robust.
Lawmakers are seeking to crackdown on lenders.
And it appears to be working.
Since the beginning of 2013, high-cost loan providers and those with ties to the industry have spent
more than $13 million on lobbying and campaign donations to at least 50 lawmakers, according to a
new report from the nonprofit Americans for Financial Reform.
Recipients include big names on both sides of the aisle, like House Speaker John Boehner and
Democrat Debbie Wasserman Schultz, though lesser-known lawmakers received some of the biggest
contributions.
One major lender, Cash America International (CSH), has spent nearly $1.8 million on lobbying
efforts and donations. Meanwhile, a leading trade group, the Online Lenders Alliance, has spent
another $1.8 million, which it told CNNMoney is part of its "federal outreach [to] educate
policymakers."
All of this money has been pouring in as consumer groups and federal regulators have ramped up
scrutiny of short-term, high-cost loans, like payday loans -- which are infamous for carrying fees that
translate into triple-digit interest rates and trapping consumers in cycles of debt.

2. Related: Payday loan borrowers pay more in fees than original loan
Last year, the Department of Justice launched "Operation Choke Point," an initiative aimed at
cracking down on banks that do business with fraudulent companies, including payday lenders that
break state or federal laws.
The payday lending industry argues that the crackdown is unfair and that even legal operators are
targeted as part of the initiative. The government is "bullying banks into choking off legal businesses
because they simply didn't like the industry," Online Lenders Alliance said in a recent statement.
The Consumer Financial Protection Bureau has also started taking enforcement actions against
payday lenders. And next year, the consumer watchdog is expected to announce a variety of new
rules for the industry.
To get the government off their backs, these "quick-fix consumer lenders" are attempting to cash in
on the "$13 million tab" they've built up through lobbying and campaign contributions over the last
two years, says Gynnie Robnett, campaign director at AFR and one of the report's authors.
The Online Lenders Alliance, for example, has ramped up its lobbying efforts significantly. Between
2012 and 2013, its spending jumped more than 40%, according to lobbying records.
"They have no problem using the money they make off of vulnerable cash-strapped consumers to
curry favor in D.C.," said Robnett.
Related: Debt collection horror stories
The report found at least 50 lawmakers, political parties and committees who have received
campaign contributions from payday lending industry groups and companies.
While any amount of lobbying or donations from a controversial industry can prompt questions of
influence, these politicians raise million of dollars each election from a variety of sources, so
contributions from payday lenders represent a small fraction.
Republican Jeb Hensarling, a representative from Texas and a vocal critic of the CFPB, has received
$183,400 from the payday lending industry since the beginning of 2013 (directly and through his
political action committee). That's more than any other lawmaker, the report found.
As chairman of the House Committee on Financial Services, Hensarling is in charge of
Congressional oversight of government agencies like the Federal Reserve and Federal Deposit
Insurance Commission.
A spokesperson said Hensarling was not available for comment.
Meanwhile, dozens of other lawmakers have also received money from the industry -- up to $90,000
a head for the 2014 election.
Some have signed letters to the DOJ questioning Operation Choke Point or have sponsored bills that
would end the initiative altogether. Others have pushed for laws that would allow payday lenders to
circumvent state laws and introduced legislation that would weaken the CFPB.
Consumer groups and Attorneys General across the country have slammed these efforts, saying that

3. current and new protections are needed to keep the industry from preying on the nation's most
vulnerable consumers.
"We hope that those in Congress who work most closely with the payday industry shouldn't have to
be reminded that they work for all of us, not just those with the money to influence elections,"
Robnett said.
The AFR report analyzed lobbying and donations to political candidates, their political action
committees and other political groups. This money came from payday lenders, installment and auto
title loan providers (all categorized as short-term, high-cost loan providers), as well as their industry
groups and related companies and employees.
For a list of top recipients and donors, view the full report here.
CNNMoney (New York) December 18, 2014: 11:31 AM ET
http://money.cnn.com/2014/12/18/pf/payday-lenders-contributions/
Final Thoughts:
As you are able to start to see the news source above says regulators are prepared to crack the whip
on cash advance lenders. I am wondering what you are thoughts are on this?