Tuesday, October 04, 2005

Time To End Payday Lending In NC

There appears to be some possibility that the legal loan sharks who operate payday lending offices may be on their way out of North Carolina, according to a story in today's N&R. It is about time.

What is baffling is the position taken by state representative Earl Jones, who says "If they're shut down, there will be no mechanism that will develop to meet that need." We can only hope there will be no replacement for an industry that charges as much as 500% annual interest.

Payday lenders hurt minority families at a disproportionate rate. Jones, who is black himself, has turned his back on many of the people in his district. Why would Jones do that? Money, of course.

In the past, Jones has claimed he receives no money from the payday lending industry. But it turns out payday lending companies and their executives have contributed to Jones' campaigns. Given his track record of dishonesty on this subject, I reject his views as tainted.

North Carolinians will have reason to be glad when payday lenders clear out of our state.

***DISCLOSURE*** My uncle Martin Eakes is one of the leaders of the Center for Responsible Lending, the group most responsible for fighting these loan sharks.


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