The Arizona Republic wrote an article titled “Where the money comes from“. According to this article, payday lenders contributed $8.7m to campaign finance for the first half of 2008. The next largest donor was The Realtors Issues Mobilization Fund, which contributed a measely $1.4m.
The alleged goal of the payday loan industry is eliminating a scheduled 2010 deadline at which time it will discontinue operations unless it receives some kind of state extension. They are also looking to impose new consumer protections.
This doesn’t sound unreasonable. I think it’s a good idea because the industry expiring because of inaction does not seem fair.
The general public needs to realize that short-term capital is in high demand. The PDL industry wants to work with the state government and regulate this industry.
Getting rid of the industry, just gives people fewer options. If better alternatives were available, you would be hearing about them.
