Communities Against Payday Predators (CAPP), a coalition of labor, veteran, consumer and church groups, is attempting to rein in payday lenders, who currently charge interest rates as high as 391-percent. A bill by state Rep. Sherry Appleton (D-Poulsbo) would have capped the rate at 36-percent, but the committee chairman with jurisdiction has refused to hold a hearing.
A bill that would slash the interest rates charged by payday lenders appears dead after a key committee chairman said the proposal won’t get a hearing.
“I want to do this in baby steps,” said Rep. Steve Kirby, who leads the House Insurance, Financial Services and Consumer Protection Committee. “I have to be a little more thoughtful on these issues than someone who is not on the committee and just puts a bill out there.”
Rep. Kirby has introduced his own reform bill which I believe has something to do with prohibiting payday lenders from breaking the kneecaps of defaulters. I suppose that’s a start.
“It is certainly a better attempt at good regulation than what is being proposed by Rep. Appleton,” said [Money Tree CEO Dennis Bassford], who leads one of the state’s largest payday-lending chains.
He and Money Tree Vice President David Bassford donated $1,200 to Kirby’s last political campaign.
Um… and there are those who argue that public financing of elections would endanger our Democracy.
UPDATE:
As has been pointed out in the comment thread, there are now more payday lenders in WA state than there are Starbucks. Not bad for a local industry that didn’t exist 12 years ago.
Oh… and guess which legislative district has the highest number of payday lenders? Rep. Kirby’s 29th LD. I’m just sayin’….