Opponents of payday lender usury in South Dakota have a friend in President Barack Obama. Yesterday the President blew raspberries at game-playing Senate Republicans and appointed Richard Cordray to head the new Consumer Financial Protection Bureau.
Banking Committee Chairman Tim Johnson (D-S.D.) said in a statement that Cordray "is eminently qualified for the job, as even my Senate Republican colleagues have acknowledged."
"It's disappointing that Senate Republicans denied him an up-or-down vote, especially when it's clear he had the support of a majority of the Senate," Johnson said [David Nakamura and Felicia Sonmez, "Obama Names Richard Cordray Consumer Watchdog Chief over GOP Objections," Washington Post, 2012.01.04].
With Cordray in place, the CFPB could start taking action to rein in the abuses of predatory payday lenders like those enriching themselves on the backs of vulnerable low-income workers in South Dakota. The markets certainly see such action as possible; payday lender stocks (good grief, people actually invest in such exploitation?) tumbled yesterday when the President announced his appointment of Cordray.
We must temper our excitement for consumer justice: the moment Cordray makes a move against payday lenders, we can expect that industry to take the action to court and challenge the legitimacy of the his recess appointment. But at least we have a director to get the ball rolling on the consumer financial protections that Elizabeth Warren (as well as the man she wants to replace, Senator Scott Brown) says we need.
So, Pastor Hickey, let's see some synergy: float that anti-usury legislation again!
Uncircle the drain: end the Janklow era now!
A few years ago a payday loan company built a two new buildings on west 12th street in Sioux Falls. The collections building is larger than the loan building. They knew where their money would be made and how much more effort they would be putting into collecting exporbitant amounts of interest. They knew their business is backwards and built accordingly. To many Republicans are for anything that makes money. Hickey happens to be a good Republican this time. Being good where your party is weak is good no matter where you are at. Dems want to help the one in need and the Reps are for helping yourself. But if a pastor would tell the Reps that protecting the slower of mind from the slick theives is moral, could be a good thing. The Reps tend to have a blind eye to a Dem telling them this. There was a prophet in the Old Testament that said that if the kings and landowners did not help the poor they would not prosper either. This is not even about giving to the poor. It is just stopping one of your neighbors taking advantage of another of your neighbors so that both can independently make a living without the smartest conning the slower. Not much different than when the state tests the scales at the grain elevator so everyone gets a fair deal.
Roger,
I believe all public policies must have a preferential option for the poor. It drives everything about me. Concurrently, I think much of the opposition to pay day lenders and other high cost loans has an unintended consequence harmful to those most financially disadvantaged.
The matter is alot more complex than just knee-jerk prohibition/limitation of high cost debt.
Troy: how would you differentiate usury laws as they are currently written with video loottery? Are they not equally usurious?
A majority GOP Congress would gut environmental protection then move to protect their contributors from lawsuits resulting from shareholder enabled ecocide.
Turning South Dakota blue would ensure your right to sue.
Stone dead fox @lisamurkowski:
After my call for an end to party seating at the #SOTU, @SenLandrieu & Sen Shelby agreed to #sittogether. I'll be sitting with @MarkUdall.