The Daily Outrage: Short-term-lending industry successfully fights reform efforts 

WHAT: Thriving from a surge in emergency loans to lower-income Americans struggling to survive the recession, the $42 billion payday-lending industry spent $6.1 million lobbying Washington, D.C., last year and has already given $1.3 million in campaign contributions this year.

WHY: Operating out of 22,000 storefronts, payday lenders typically make instant short-term loans requiring repayment within two weeks at fees of $15 to $25 for every $100 borrowed.

DID IT WORK? Payday lenders defeated restrictive amendments to the U.S. House 2009 financial reform bill. The failed rules would have capped payday interest rates — which reach triple digits each year — and limited the number of loans a lender could make to one customer.

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Staff Report

Staff Report

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A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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