May 03, 2010 07:43 PM UTC

Payday Loan Passes Senate, Despite GOP Fears We're Welcoming the Mob

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• by: jaytee

( – promoted by Colorado Pols)

Payday regulation passed the Senate and is headed back to the House for reconciliation. Sponsor Ferrandino is confident it will pass and cautiously optimistic that the bill will succeed in ending the worst of the dread payday gouging and abuse.

The Colorado Independent reports that the debate last week featured a gem by GOP Sen Al White, who thought regulation would kill the industry, which would bring in the mob to serve the payday customers, which would end in the literal beating if not killing of debtors. Talk about a job killer!

White:

“If we pass this bill, we are inviting organized crime into Colorado…. Organized crime makes these loans and you know how they collect? They send Willie the Enforcer out to your house, and Willie the Enforcer is not satisfied with a post-dated check.”

Ferrandino:

“The bill’s obviously weaker than the original version, but I think it gets us to where I want to be. It is a much more complicated bill now, so the question is Will the industry find loopholes within the law? I think the intent of the bill is clear, but do they find loopholes?

“I think the way the Senate looked at it, and I was part of that discussion, was really to allow the consumer the power to decide how long the loan would be and make sure they don’t get caught inside the cycle of debt. We’ll see by next year if it doesn’t work out as intended.”

   

Too bad this legislative session is coming to an end!