MyDD :: John Edwards Talks Payday Loans in Iowa

John Edwards Talks Payday Loans in Iowa

by Jonathan Singer, Sat Jul 08, 2006 at 10:52:24 AM EST

John Edwards of North Carolina hit the hustings in Iowa yesterday on behalf of a longshot US House candidate, and as the Associated Press reports, the former Senator hammered away at a very important issue.

John Edwards, a White House hopeful, focused on the problem of predatory lenders in his first swing through Iowa since a statewide poll gave his potential presidential campaign a boost.

"What we're doing is focusing on what can be done to stop predatory lenders and payday lenders from preying on our most vulnerable families," said Edwards, who called for new regulations for an industry in which annual interest rates for payday loans can soar to 300 percent to 400 percent.

For the past couple of months, I have become intimitely acquainted with the effort to begin regulating payday loan stores and predatory lenders in general. As a part of the state House campaign that I am managing in Oregon (Mike Caudle for State Rep), I have been working at both the local and the district level to reign in these companies, which in my state charge up to a 521 percent annual rate on short-term loans.

Just to provide some perspective, a survey by the State of Oregon (.pdf, page 27) showed that 30 percent of payday loan consumers explain they take out the loan just to pay for groceries. Another 10 percent take out the loans to pay off other loans.

Not only is it good policy to reign in predatory lenders, it is good politics, too. There has been polling conducted on this issue, and while I can't get into the details of it, suffice it to say that the vast majority of voters -- and even the vast majority of Republican voters -- are in favor of capping the interest rates that predatory lenders charge.

But a surprising number of Republicans in Oregon, and no doubt across the country, are opposed to placing regulations on predatory lenders on grounds that free enterprise should be left free.

So when Democrats like John Edwards and Mike Caudle come out in favor of new regulations and Republican politicians announce their opposition on grounds of free enterprise, the Dems have a great wedge issue to drive in the middle of the GOP coalition. Speaking from experience on the ground, even faith voters -- especially faith voters -- are willing to defect from the Republicans over this issue.

So I really hope Senator Edwards continues to hammer away on this issue throughout his (possible) bid for the Democratic nomination. I certainly know that my campaign will for the next four months through election day.

Tags: John Edwards, 2008, Primaries, Democrats, Payday Loans, Payday Lending, Predatory Lending (all tags)

Permalink :: 53 Comments :: Post a Comment

Re: John Edwards Talks Payday Loans in Iowa (3.00 / 1)

Abso-fucking-lutely! I really like what i am hearing from Edwards this year. This pay-day loan industry has got to be reined in.

Join the Iowa progressive community at Bleeding Heartland.

by desmoinesdem on Sat Jul 08, 2006 at 10:53:29 AM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

In 2001 Edwards voted with Bush and the Republicans for the credit card industry's predatory bankruptcy law.

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sat Jul 08, 2006 at 01:53:24 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

great post--this isnt something you hear about everyday, and i also think that this is an issue that should really speak to the hearts and minds of decent, rational human beings...

however, everytime we think we have a new "wedge issue" it never seems to take off quite like abortion, gays, or guns...

by njfellow on Sat Jul 08, 2006 at 11:07:42 AM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

This is an issue in the low income people of color communities. What's the solution? I am sure regulation is part of it. But, I think the real changes have to come about through real sources of capital being added into the community, higher wages through minimum wage increases, and basic benefits such as healthcare to minimize the need to ever get such bridge loans.

by bruh21 on Sat Jul 08, 2006 at 11:08:05 AM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

definitely... actually, i think this loan regulation should be a part of a larger reform package including all of the things youre talking about, but especially a living wage law/minimum wage increase, and items targeting the organized labor community... something like a new Workers Bill of Rights or No Worker Left Behind law

i believe we really need to be creative about how we communicate our ideas, and we need to constantly try to create new partnerships and alliances in order to get broad support for large reforms... we have big opportunity this year to communicate our vision for america...lets hope nancy, harry, and howard can all get on the same page.

by njfellow on Sat Jul 08, 2006 at 11:13:08 AM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

i dont see it happening this year. the democrats are afraid of their own shadow too much. they talk a good game, but when challenged people can tell they are bluffing.

by bruh21 on Sat Jul 08, 2006 at 12:03:58 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

Edwards/Obama '08

by adamterando on Sat Jul 08, 2006 at 11:09:18 AM EST

Re: John Edwards Talks Payday Loans in Iowa (1.00 / 0)

A NeoDem and a Zellocrat on the same ticket?

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sat Jul 08, 2006 at 01:54:42 PM EST
[ Parent ]

Edwards = Zell? (none / 0)

Edwards is no Zig Zag Zell. Do more reserch on both and you will see what I mean.

"Once in a while you get shown the light In the strangest of places if you look at it right"

by molly bloom on Sat Jul 08, 2006 at 08:38:53 PM EST
[ Parent ]

Re: Edwards = Zell? (none / 0)

Edwards is the NeoDem. Obama is the Zellocrat.

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sun Jul 09, 2006 at 04:33:58 AM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (1.00 / 0)

Sorry-off topic... can someone tell me where I can find the instructions for creating links in diaries/comments?

Thanks!

by njfellow on Sat Jul 08, 2006 at 11:25:37 AM EST

Re: John Edwards Talks Payday Loans in Iowa (3.00 / 0)

If you replace the parentheses with <>, then

(a href="http://www.mydd.com")link(/a) becomes link. Be sure to remember the quotation marks.

"You say the world has lost it's love I say embrace what it's made of" -Dar Williams

by Valatan on Sat Jul 08, 2006 at 02:05:57 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

Thanks! Was waiting for someone to respond...

by njfellow on Sat Jul 08, 2006 at 04:06:56 PM EST
[ Parent ]

Easier if you use brackets (3.00 / 0)

[URL linkname] will do the trick on scoop blogs (Mydd, Dailykos, Talkleft, etc.) and Wikipedia.

brackethttp://www.mydd.com Chris Bowersbracket

repalce bracket with a [ at the begining and a ] at the end and you get

Chris Bowers

"Once in a while you get shown the light In the strangest of places if you look at it right"

by molly bloom on Sat Jul 08, 2006 at 08:44:52 PM EST
[ Parent ]

Re: Easier if you use brackets (none / 0)

very helpful--thank you :)

by njfellow on Mon Jul 10, 2006 at 02:48:41 AM EST
[ Parent ]

Why haven't Dems run with this before? (none / 0)

You surely don't get issues which are more in the Dem wheelhouse house than this one.

We're in classic New Deal coalition territory, surely? Pretty much everyone - and its not a terribly hard issue to understand once you focus on it - either is a potential sufferer or a potential sympathizer (no one likes a usurer!).

And - for the Dems, it combines a similar level of emotional appeal to the Schiavo nonsense with a genuine need that has a genuine legislative solution.

The puzzle is, then, why hasn't this been front and centre of the Dem attack for years?

(This 2004 study (PDF) from the Center for Responsible Lending looks like a good intro for newbies (like me!) - their page on the subject has more.)

Some states have enacted anti-payday lending laws, apparently, but there are often loopholes (surprise, surprise).

by skeptic06 on Sat Jul 08, 2006 at 12:05:24 PM EST

Payday Payola (3.00 / 1)

Here in John Edwards' home state of North Carolina payday lendering money has been an insidious influence in state politics. Though payday lending has been banned it keeps coming back like a character in a bad horror movie.

Read about illegal campaign contributions in NC under "Payday Payola" at Joe Sinsheimer's website JimBlackMustGo.com and that doesn't include the legal contributions.

One of the big players is a GA based company, Compucredit, which gives locally to Dems and Reps alike to influence the legislature but has given the largest contributions to a Republican State Senator, Fred Smith, who is positioning himself for a run for Governor and recently had a fundraiser with Newt Gingrich.

Payday lending in other states has reduced troop readiness as soldiers in debt lose security clearances necessary for deployment.

In Georgia payday money is influencing the race for Lt Governor with payments to Ralph Reed from Compucredit ownership. Read What Annual Fee Would Jesus Charge? for the full story.

by gregflynn on Sat Jul 08, 2006 at 12:16:10 PM EST

Re: Payday Payola (none / 0)

Im doing a report on payday lending. Would you happen to have a link on where I can find information about contributions from CompuCredit to Fred Smith? Thanks.

msyost@ncsu.edu

by msyost333 on Tue Jul 25, 2006 at 02:57:45 PM EST
[ Parent ]

Couple of other points (none / 0)

Where are the unions in pushing this issue?

Andy Stern's SEIU, for instance. You ask Mr Google seiu "payday lending" and the returns are disappointing.

And - why couldn't it have been slipped into the New Direction document?

by skeptic06 on Sat Jul 08, 2006 at 12:26:10 PM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

This is really a reflection of the lack of control and deregulation of the national banking industry. As the national banks took over more and more local banks there has been less servicing of local interests including things such as small loans of less then $500. These loans are not important to large commercial banks but they were the life blood of local community banks and savings and loans. We need some reregulation of the banking industry.

by Demo Dan in Dayton on Sat Jul 08, 2006 at 12:40:39 PM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

New York City passed a strong law on this a few years ago that you might look to as a model.

The problem is that in places where there are not large banks (who opposed small lenders, but who charge high fees), payday loans are often a significant part of the local financial system.

The solution, and I'm just speculating based on personal experience here, has to lie in Credit Unions, which leads us back to the need for less government regulation on union activity.

by desmoulins on Sat Jul 08, 2006 at 01:10:39 PM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

John Edwards, a White House hopeful, focused on the problem of predatory lenders in his first swing through Iowa since a statewide poll gave his potential presidential campaign a boost.

In 2001 Edwards voted with Bush and the Republicans for the credit card industry's predatory bankruptcy law.

Edwards isn't a fence sitter. He's a fence hopper -- first one side and then the other. It's no wonder Kerry picked him for VP. How does anyone manage to take these DLC NeoDems seriously?

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sat Jul 08, 2006 at 01:30:52 PM EST

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

Now you and I know that there's a big difference between the credit card business and the payday loan business. Edwards supported the bankruptcy law for a reason.

Children, have you any fish?

by FishOutofWater on Sat Jul 08, 2006 at 04:23:37 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

"Edwards supported the bankruptcy law for a reason."

Since you didn't cite the reason, let me guess it -- Citibank gave him campaign contributions and sent lobbyists to his office?

His brief Senate record is all we have to judge Edwards on -- and he voted for the most odius items on Bush's agenda.

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sat Jul 08, 2006 at 05:19:03 PM EST
[ Parent ]

Edwards is remaking himself in the (none / 0)

mold of RFK in the issues he is chosing to highlight. I don't like the bankruptcy "reform" any more than you do (BTW I notice the link you gave cites Kerry as voting no).

I don't think Edwards is going after the Citibanks of the world with this issue, do you?

What I do care about is Edwards is now a high profile politican running for the presidency in 08 and if his 08 conversion to the issues of poverty and the plight of the working class breathes life into them in the national debate, I'll take it.

Edwards also blazed the trail in being the 1st politican who voted for the Iraq resolution to come out and say it was a mistake. Again, shades of RFK in 68. FDR is a liberal icon now, but I expect most of us would have been wary of him in 1932.

"Once in a while you get shown the light In the strangest of places if you look at it right"

by molly bloom on Sat Jul 08, 2006 at 08:57:03 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

Charlotte is a major banking center. Edwards, like most successful politicians, doesn't bite the hand that feeds him. I happen to agree with you that the bankruptcy bill favors predatory credit card companies and burns average folks that have a turn of bad luck. The most common cause of bankruptcy is major medical problems. The bankruptcy law is an example of the "kick 'em when they're down" attitude of the Republican Party. Edwards should not have voted for it, but he had a clear reason.

I don't think we can expect politicians to be perfect. Edwards is about as liberal as a politician can be and still get elected to the Senate from North Carolina. He's not like Lieberman who is a Bush apologist in a liberal state. It's good that Edwards is taking on the payday loan thieves.

Children, have you any fish?

by FishOutofWater on Sat Jul 08, 2006 at 10:18:35 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

I don't think we can expect politicians to be perfect.

I don't expect perfection. I expect behavior that is consistent for the benefit of the people in or out of office.

Taking verbal potshots at payday loan sharks doesn't nearly undo the damage Edwards did to ordinary people by voting for the bankruptcy bill.

In my book doing rotten things because that's what it takes to get elected is no good excuse.

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sun Jul 09, 2006 at 04:46:45 AM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

Now you and I know that there's a big difference between the credit card business and the payday loan business.

Loan sharks charge 20% interest up front on each paycheck while credit card sharks wait until you're one day late with a payment and then charge 20% forever.

The only difference between them is that the credit sharks wear whiter collars.

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sat Jul 08, 2006 at 05:53:57 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

No the difference is that the credit card business is a major source of revenue for banks. It's much bigger business Also, 20% on an advance of a month or less comes out to 240% or greater APR, which is much higher than credit card rates.

Actually, these days you don't even have to be late on a payment or do anything wrong. If there are too many inquiries on your credit, your credit rating goes down and they can jack up your rates as they see fit. The goal of the credit card companies is to turn all working people into debt slaves to maximize their profits.

Children, have you any fish?

by FishOutofWater on Sat Jul 08, 2006 at 10:34:01 PM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

The goal of the credit card companies is to turn all working people into debt slaves to maximize their profits.

I'm what the credit card sharks call a "freeloader". I use their cards as money, but pay the bill every month so that they make no profit from me -- in fact, they must lose money processing me every month!

Just my little bit to help overthrown predatory corporatism/fascism.

With Democrats Lieberman goes for the jugular. With Republicans he goes for the lips.

by Sitkah on Sun Jul 09, 2006 at 04:52:01 AM EST
[ Parent ]

Re: John Edwards Talks Payday Loans in Iowa (none / 0)

Ugh, Ugh, Ugh! There are more "Instant Cash" sleaze outfits in my area than there are coffee stands.

They are racketeers, guilty of Money Lendering.

by admiralnaismith on Sat Jul 08, 2006 at 01:46:02 PM EST

OT: Dave Loebsack (none / 0)

How much of a longshot is he? It's a very Democratic district - if he's a longshot then there won't be a Dem landslide, that's for sure.

by The Animal on Sat Jul 08, 2006 at 03:26:12 PM EST

Re: OT: Dave Loebsack (none / 0)

Loebsack shouldn't be a longshot if folks in the District and across the country can get behind him, since he is a real progressive and will keep up an even better record than the liberal Republican Jim Leach. Leach, while not entirely a bad guy, survives in the district by being an amazing pain in the GOP's side on small issues, while capitulating on the big tough message issues.

With more help from folks like Edwards, Bayh, Feingold, and other '08ers Loebsack can raise the money and challenge a Republican incumbent in a district that is Democratic. Democrats should target all pick-up opportunities and we stand a realistic chance here with the right kind of attitude and focus, particularly with the present political atmosphere.

Progressive voices from the Heartland Political Forecast

by Chris Woods on Sun Jul 09, 2006 at 10:17:14 PM EST
[ Parent ]

Re: John Edwards Talks (none / 0)

What does the Bible say about usury, again?

by JJCPA on Sun Jul 09, 2006 at 03:19:10 AM EST