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Moran: Helped Bring Payday Lending in Virginia?

McAuliffe just accused Moran of supporting legislation that allowed payday lending into the state.

It's true, but at the time most lawmakers thought the bill would regulate the industry and prevent it from preying too deeply on the poor.

Moran voted for a bill in 2002 that opened Virginia to payday lending. Lawmakers from both parties thought the bill would license and regulate the industry, but instead payday operators quickly multiplied.

Three years later, Moran did vote to enact some of the nation's most stringent reforms of the payday loan industry, though many opponents did not think it went far enough.

Since 1996, Moran has taken $30,200 in donations from lending or consumer credit companies.

By Amy Gardner  |  May 19, 2009; 2:47 PM ET
Categories:  2009 Governor's Race , 2009 Governor's Race Fact Checker , Amy Gardner , Brian J. Moran , Election 2009  
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Comments

There were no payday lenders in Virginia prior to 2002. This legislation brought them into Virginia. Leslie Byrne

Posted by: leslie_byrne | May 19, 2009 3:06 PM | Report abuse

"Introducing" and "voting for" aren't entirely dissimilar things...

Posted by: robsmithiii | May 19, 2009 6:31 PM | Report abuse

The defense that I've heard most commonly from his camp is that he didn't "introduce" the legislation -- followed by no mention of the actual vote for it. Timeliness of the bill doesn't suggest it was proffered due to any deep, downward trend in constituents' ability to earn enough income, etc.; furthermore, payday loans should never be used to solve the negative effects of a recession or stagnation in employment opportunties either. If committee minutes are available from the decision to vote in the affirmative for passage, I guarantee there won't be any substantive discussion of offsetting constituents' economic woes contained in the transcript.

Posted by: robsmithiii | May 20, 2009 8:34 AM | Report abuse

The pay day lending industry should not be regulated because it decreases competition and puts pay day lenders at a disadvantage. By doing this, they cannot offer a price that is reasonable for consumers which puts consumers in a position with less options in a time of need.

Posted by: paydaylendingrep | May 20, 2009 11:44 AM | Report abuse

Time has proven that the American mantra of open competition, deregulation and free trade have messed up the common man and only a few rich have become richer. The lack of protection for American products brought in cheap Chinese products which are frequently very poor quality, and catered to the fashion driven consumer - end result is that American textile industry died. Three cheers to Walmart.

Pandering to the desire for choice, we have more models of cars than half the rest of the world put together, and what happened? We have unnecessary inventory, avoidable advertisements (I believe more than $1,800 per car), and three almost bankrupt companies.

Deregulated phone companies killed thousands of jobs, and the large companies, and now we have gone full circle and we have new big companies with the same old name (so the new at&t is different from the old AT&T). Deregulating electricity generation and distribution has created another mess, where there is plenty of distribution, but little generation! Deregulation and lack of control in the financial markets has ruined our nation in just over 5 years! How the mighty have fallen and how quickly!

Once credit cards were allowed to play havoc, consumers were raped - all payments go to the lowest rate advances' balances, interest rates could be revised at will, and any missed or late payment will void any special rates! New legislation is requiring these predatory measures to be revoked and honesty in lending restored.

Predatory payday loans should be highly regulated, and at best allowed with fair interest rates for the advances. Over a period of time the borrowers should be educated on how to stay out of this trap. Banks should be encouraged to issue special credit cards with a limit tied to paychecks, which could be used in an emergency.

Unregulated immediate gratification is the bane of our society. Let us not perpetuate this, let us learn to tighten our belts and live with a little less. Many of the luxury and discretionary spending industries will dwindle and perhaps die, better that happens than our very foundations stay rattled.

Posted by: alankrishnan | May 20, 2009 11:44 PM | Report abuse

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