Tom Cotton major recipient of predatory lenders' campaign cash | Arkansas Blog

Tuesday, June 23, 2015

Tom Cotton major recipient of predatory lenders' campaign cash

Posted By on Tue, Jun 23, 2015 at 11:07 AM



Americans for Financial Reform
has a report coming out on lobbying bucks from the payday lending industry during the last election cycle. One of the biggest recipients? Sen. Tom Cotton. The Consumer Financial Protection Bureau is currently working to develop rules to protect consumers from predatory lenders. The industry is predictably fighting regulation tooth and nail. 

Here's the list of the top ten congressional recipients of campaign contributions from payday lenders and their trade associations: 

• Rep. Jeb Hensarling (R-TX) / Jobs, Economy & Budget Fund - $210,500
• Rep. Patrick McHenry (R-NC) / More Conservatives PAC / McHenry Leadership Fund - $105,300
• Sen. (former Rep.) Bill Cassidy (R-LA) / Citizens for Conservative Leadership - $95,600
• Former Rep. Jack Kingston (R-GA) / Southern Conservatives Fund - $88,500
• Rep. Kevin Yoder (R-KS) / Yoder Victory Fund - $85,757
• Rep. Steve Stivers (R-OH) / Support to Ensure Victory Everywhere PAC / Stivers Victory Cmte - $80,700
• Rep. Pete Sessions (R-TX) / PETE PAC - $76,630
• Rep. Blaine Luetkemeyer (R-Mo) / Building Leadership and Inspiring New Enterprise - $75,350
• Sen. (former Rep.) Tom Cotton (R-AR) - $62,800
• Sen. Tim Scott (R-SC) - $57,870

Above, see John Oliver's righteous takedown of these truly nasty predators. 

From AFR's press release: 

These predatory lenders do not want to rethink their business model, and campaign contributions are one big way in which they hope to achieve their goals in Washington. But their goals go sharply against the weight of public opinion. Broadly speaking, two-thirds of voters – including majorities of Democrats, Independents and Republicans – believe there should be more, not less, government oversight of financial companies, while three-quarters of voters say they support a rule requiring payday lenders to verify a borrower’s ability to repay within the stated period of the loan.

Americans for Financial Reform, which put out this report, is a nonpartisan and nonprofit coalition of more than 200 civil rights, consumer, labor, business, investor, faith-based, and civic and community groups. Our members have called on the CFPB to take strong action against what we consider to be the highly abusive practices of payday, auto title and installment lenders.
The business model of payday lending is to make bad loans. A bad loan is one that a borrower cannot pay off and still cover basic necessities like rent and food – unless they take out another loan, and then another. Each loan comes with a 400 percent interest rate in the form of a new fee and each fee creates a bigger hole in the borrower’s budget. This is what we call the debt trap, and it’s intentional.

Payday and other high-cost quick-fix lenders make little or no effort to determine whether a borrower can afford to repay a loan. Instead, they rely on direct access to someone’s bank account or car to ensure collection - even if it takes priority over rent, utilities and other necessities. The typical payday loan customer is indebted for more than 200 days a year, and many people end up paying far more in loan charges than they borrowed in the first place.

For all these reasons, we think the voters of Arkansas should know – and would want to know – that Sen. Tom Cotton received $62,800 from payday companies and/or trade associations in the last election cycle.

From the ArkTimes store

Favorite

Comments (18)

Showing 1-18 of 18

Add a comment

 
Subscribe to this thread:
Showing 1-18 of 18

Add a comment

More by David Ramsey

Readers also liked…

  • Judge Griffen: Why black lives matter

    Another few words from Judge Wendell Griffen growing from the controversy over the sale of Black Lives Matter T-shirts at the state black history museum — removed by the administration and restored after protests from Griffen and others stirred by a story in the Arkansas Times:
    • Mar 13, 2016
  • Presidential thriller, co-author Bill Clinton, coming to bookstores in 2018

    June 2018 is the expected publication date for a novel collaboration by former President Bill Clinton and crime writer James Patterson.
    • May 9, 2017
  • More on how highways were used to wipe out "blight" of non-white neighborhoods

    Vox, a news website that concerns itself with energy and other issues, has a fine piece, including before and after images, on the history of the U.S. interstate system and why roads were built through the middle of cities (unless people of influence stopped them — see Manhattan, San Francisco and Washington, D.C.)
    • Mar 22, 2016

Most Shared

  • Guest Playlist: Flap Jones of "Not Necessarily Nashville" schools us on real country music

    "Not Necessarily Nashville," which airs on KUAR-FM 89.1 every Saturday, 7 p.m.-9 p.m., celebrates three decades of the "best of the rest of country music" Saturday, October 21 at the White Water Tavern with Brad Williams of The Salty Dogs & The Creek Rocks, and we asked host Flap Jones to curate a playlist for us ahead of that anniversary celebration.
  • Discussion: State killing of the mentally ill

    The Arkansas Coalition to Abolish the Death Penalty and others will have a forum on mental illness and the death penalty at 6:30 p.m. Monday at the Bowen School of Law's Friday Courtroom.

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation