Federal Payday Loan Bill Will Challenge State’s Powers…

The Wall Street Journal writes:

“A bipartisan team of House lawmakers is pushing new legislation that would allow nonbank lenders, including those typically known as payday lenders, to choose to operate under a federal charter and avoid dealing with a patchwork of often conflicting state laws.”

The operative words here are “…avoid dealing with a patchwork of often conflicting state laws.”  Not sure how accurate this scenario is.  States laws seem to supplement federal laws frequently, so they can still make life miserable for payday lenders.

Business Week magazine also writes about the new push for the federal government to regulate payday lenders.  The article titled “Payday Lenders Seek U.S. Oversight vs. States“.   These changes are about helping US lenders compete against Native American tribes and overseas lenders offering loans online.Cash America (CashNetUSA) is on pace to contribute $400k in political contributions.  Pretty much pocket change for them.  Cash America posted a net income of $135 million on $1,54 billion is revenues for 2011.  That’s pretty remarkable.

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