Council Should Vote For Payday Lending Regs

It’s just the right thing to do. But if there are members of City Council who want to talk about “free markets” or claim they haven’t heard anything from the community, Lisa Falkenberg at the Chron has a hard-hitting article this morning, including quotes from those affected by the predatory lending practices of the industry. And then this.

Guerrero said it never occurred to her to call her councilman: “I just never thought the City Council was involved with, you know, all these little loan places out there.”

I asked the grandmother the same question: Why hadn’t she complained to her councilman about her struggles with the loan companies?

“The truth is,” she told me, “I’ve never had anybody like you come up to me and show some kind of interest. I didn’t know there was somebody out there who had somebody’s back. There’s a lot of questions that we the people have. But there’s nobody out there to hear us.”

Do you hear them now, Councilman Rodriguez?

C’mon, this is a financial issue for most families, why would most think about going to their Council member for help? A State Rep., maybe, but it’s obvious that some State Reps have been influenced by the same lobbyists and PACs, so, they probably would have met the same walls. That said, as Falkenberg mentions, the lack of movement by the Texas Legislature has now placed the opportunity to do something about this problem in the hands of City Council members, thanks to Mayor Annise Parker.

There are other members of Council who might use terms like, “personal responsibility” to describe those who cannot get ahead of these loans. But the practices, as described by Falkenberg and those interviewed, say much about the industry as it is today and how the loan process is designed to do exactly what it is doing to families. All a politician who is interested in “industry” dollars for a 2015 run for something has to do is open their eyes–or take off the blinders.

When I went off to college, my parents would worry about my finances at least a few times a year and wanted to make sure I had a few bucks in my pocket–usually as I waited for my grant/loan check to be released. So, they’d visit the local “loan company”–a pawn shop and short-term loan place. Everyone in town knew him as “El Pat,” a white dude who built his business and relied on the Chicanos in the town. High interest? Sure. Predatory? Certainly not how things are today. Then again, we’re talking about the late 80s. Years and years of Republican promotion of the “free market” have allowed the industry to run amok.

Are these businesses needed? And will these businesses still make sizable profits–even enough to pay for an extra lobbyist–with these regulations? Yes to both.

So, the smart thing is to simply vote yes–or at the very least, allow an up or down vote.

Kuff has some background. Texpatriate supports the regs, too.

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