JEFFERSON CITY – A bipartisan group of Missouri’s top elected officials have received more than $1.6 million in campaign contributions from payday lenders and their lobbyists over the past decade, according to a report released today by national campaign finance watchdog Public Campaign.
More than half of the money was given during the 2010 election cycle alone.
The top recipient of payday lending contributions has been House Speaker Steve Tilley, a Republican from Perryville who will leave elected office at the end of the year. From 2000 to 2011, Public Campaign found that Tilley received more than $70,000 in donations.
Other top recipients of payday lending money who currently hold public office include Republican Rep. Tim Jones, who is expected to become House Speaker next year, and Democrats like Gov. Jay Nixon, Senate Minority Leader Victor Callahan of Independence and House Minority Leader Mike Talboy of Kansas City.
Public Campaign, a critic of the payday lending industry, contends the donations have helped stifle changes to the state’s payday lending regulations. The average interest rate for a payday loan in Missouri is 445 percent annually, and legislation aimed at capping that rate has repeatedly failed to get traction.
Supporters of tougher regulation on short-term loans launched a petition drive hoping to put a 36-percent interest rate cap on the ballot this fall. A lawsuit challenging the measure is currently before the Missouri Supreme Court, which could rule as early as Tuesday.
QC Holdings Inc., a payday lender based in Overland Park that operates primarily under the Quik Cash name, is the largest of the industry’s Missouri donors. The company has spent around $340,000 between the 2000 and 2010 election cycles, Public Campaign found.
The company has also been active in fighting the payday lending ballot measure. One of its executives is the lead plaintiff in the lawsuit, and the company told the U.S. Securities and Exchange Commission earlier this year it had already spent a substantial amount opposing the measure.
Much of that money likely went to a nonprofit group in Kansas City that over that last year has donated $2.1 million to a political committee formed to fight the measure.
A payday loan, in general, involves a borrower writing a personal check to the lender, who then holds the check for 14 to 31 days. At the end of that period, either the check is deposited, the borrower returns with cash to reclaim the check or the loan gets renewed and the borrower pays additional fees. Payday loan amounts typically range from $100 to $500.
Missouri has one of the highest densities of payday lending stores in the country, with more than five shops for every 10,000 households.
Critics of payday lenders contend they profit by targeting low-income families and generating a cycle of debt that exacerbates economic hardship.
The industry argues it provides a valuable service by helping its customers cover emergency costs, and that the industry’s interest rates are less expensive than bank overdraft fees or late bill payment penalties.
Read more here: http://midwestdemocracy.com/articles/payday-industry-spending-big-missouri-politics/#storylink=cpy