LA Times David Lazarus: Lawmakers are fighting efforts to rein in predatory lending. Why?

Here.  It's mostly about Florida Representative and Democratic National Committee chair Debbie Wasserman Schultz's proposal to derail the CFPB's possible payday lending rule that Brian blogged about a few days ago. Excerpt:

[Wasserman's] spokesman, Sean Bartlett, said the legislation "is about preserving the shared goal of implementing strong consumer protections while also preserving access to affordable lending for low-income communities."


Or maybe it's more about money.

Florida's representatives, from both parties, have been the primary backers of the Consumer Protection and Choice Act since its introduction last November, and most of them are up to their necks in donations from the payday-loan industry.

* * *

Wasserman Schultz climbed aboard in December. She's pocketed $63,000 in contributions from payday lenders, according to the database.

* * * Florida's law has relatively lax standards and no requirement that payday lenders check in advance to make sure borrowers can repay loans in full without becoming mired in perpetual indebtedness.

There are few limits on how many loans a Floridian can receive. People in the state who use payday loans take out an average of nine loans a year, according to the Center for Responsible Lending.

The average loan is $250 with an annual interest rate of 312%. Most borrowers take out a new loan as soon as the previous one is paid off, the center found.

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