Christina NuckolsPEOPLE WHO DEFINE issues in terms of good and evil can have a disruptive effect on the usual deal-cutting that goes on at the state Capitol.
Religious activists intent on curbing predatory lending in Virginia aren't big on compromise. That drives legislators and Gov. Tim Kaine's advisers batty as they try to find a solution that both activists and payday lenders can live with.
Most controversies in Richmond get sorted out by professional lobbyists, who are usually happy to "split the baby," finding a middle ground so they can collect their paychecks and head off for a scotch at The Jefferson.
The folks at the Family Foundation and the Virginia Interfaith Center for Public Policy frown on baby-splitting, literal or metaphorical. They are holy warriors on a crusade to protect low-income people from payday lenders' debt traps, and mealy-mouthed reforms hold no appeal.
Last year, the religious groups held fast to their goal of capping annual interest rates for the short-term loans at 36 percent, down from the 391 percent allowed now.
They refused to budge despite high-level cajoling from the executive mansion, and in the end they came up empty-handed.
Now they're back, and they have some heavyweight friends on their side. A Newport News businessman and a North Carolina nonprofit with ties to credit unions have hired teams of lobbyists from mega-firms LeClair Ryan and McGuire Woods to assist in their reform efforts.
The lobbyists have dramatically changed the landscape in Richmond.
Del. Glenn Oder, the Newport News Republican working with the activists on a reform bill, calls the lobbyists experts in "the art of the possible."
Said Chris Freund, vice president of the Family Foundation: "They have access and influence the faith-based advocates don't have with legislators. And they can work outside of the emotion and try to find places where you can move a little bit."
The new payday lending bill limits customers to one loan at a time, and no more than five a year. When Republican Speaker Bill Howell lined up alongside Democratic members of the Legislative Black Caucus to support the measure, payday lenders were aghast.
It's no secret that the delegates backing the plan have wildly different motivations. Lawmakers in both parties have sincere moral reservations about predatory lending. But some Republican leaders have enjoyed putting Senate Majority Leader Richard Saslaw on the spot.
Saslaw has been the chief defender of payday lenders, who gave $20,000 to his campaign last year and another $11,000 to his Senate Democratic Caucus. It's an issue where he and Kaine disagree, and Republicans don't mind pouring salt into that wound.
Saslaw is backing a separate bill with only minimal consumer protections. That sets the stage for negotiations that could drag into the final hours of this year's General Assembly session.
There will be pressure in those high-stakes talks to cut a deal, and the question on everyone's mind is whether the holy warriors and the lobbyists can hang together. They may be on the same side, but they still have very different ideas about what they're fighting for.
Christina Nuckols is an editorial writer for The Virginian-Pilot. E-mail her at christina.nuckols@pilotonline.com.
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The problem is that
The problem is that lawmakers continue to spend taxpayer money on “issues” they create. The number of actual payday loan consumers who complain is next to zero. The complaints about the industry tend to come from individuals who have never been in a position to have to use such services. They’ve never had an unexpected financial hardship, job loss, inability to get health insurance or outrageous medical bills. The problem isn’t payday lenders, the problem is that the average customer has had a life-altering circumstance that has affected their bottom line. It appears to be much easier for lawmakers to blame the payday loan industry for the debt of consumers instead of focusing on the real issues including the economy and job loss. Payday lenders provide people with the means to pay small bills in addition to providing jobs and helping people make a living.
predatory lending
Good article, thank you. I have read a few and I really like how you just state the facts. Except for the predatory lending part. A predatory lender loans money to someone who can't pay it back. Payday lenders make sure I will have the funds before they lend me money. Here is the thing I don't get, why are we targeting the lenders? The lenders are not the irresponsible ones, they are getting all the blame for irresponsible borrowers. I have used payday loans for years now, and I have always paid the loan back when it is due. It is not that hard, you get a loan, and two weeks later, you pay it back, but some people don't get that, and they are ruining it for the rest of us. I don't mind paying the $15 fee per $100. I see it this way, a Toyota Avalon is basically the exact same car as the Lexus LS, but the price difference is about 10 grand. It is the same with payday lending versus regular lending. The problem with regular lending is that it is hard to get, and you have to wait to see if you are approved. With payday lending, there is virtually no wait, and it is easy to get approved. The point is that you pay a premium price, for a premium product. In my opinion, instead of targeti
payday lending
I think Ms. Nuckoll's commentary on good and evil shows just how naive some of the religious right/neocons are. The fact that two sides can't compromise and come to do what is best for their constituents is what has happened in DC...and we all know how that is turning out.
Oxymoron
"Holy ---- Warriors"
Keep your compromises, Christine
For the past 10 years I've watched the GOP "compromise" every principle the party allegedly holds dear and "compromise" every dollar in my wallet. Frankly, I don't give a wit one way or another about the payday lending issue - it tends to only effect deadbeats who have never paid a bill on time in their lives - but I'm still sick to death of hearing how "compromise" is the only way to get things done in government.