Tuesday, June 03, 2008
Ohio payday lending update
TPS stalwart Rob Holub keeps us up to date on the payday lending situation in Ohio; it's gotten worse. (We touched on this issue before.)
I'm constantly surprised by the interest group power held by the exact two groups mentioned here-- religious and consumer protection groups. It's surprising to me because they stand to gain nothing fiscally from defending these issues; in this particular instance, it's not like those who would otherwise be paying 35% would transfer the 7% difference to the supporting group. Do people give to these groups on moral grounds, or on the ground that they want to impose their morals on the rest of society? It means that much to them? Now that's a scary thought.
My column in the State Journal this week will deal a bit with consumer protection groups; seems to be the issue of the week.
The group of lenders, by the way, have acquired a former Solicitor General in their fight against the law in hopes of mounting a constitutional challenge to the bill. Well, if the contract clause in the constitution held any weight, this would get thrown out in a second, but that's long since gone the way of the typewriter and Boston sports fans' modesty.
This is a five labeler!
Addendum: Here's a funny clip on banks vs. check cashing places, it's 9 minutes long but pretty good. (Mild profanity.)