May 20, 2015 02:37 PM UTC

"Loan Shark Payback"--How A Bipartisan Dirty Deed Was Done

• 9 Comments
• by: Colorado Pols

UPDATE: FOX 31 reports on the controversy over House Bill 15-1390:

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A big question remaining from the end of this year’s legislative session is the status of a bill passed at warp speed just as the session came to an end earlier this month. House Bill 15-1390, legislation that would allow subprime personal lenders to dramatically increase interest rates on “supervised” loans typically sought by borrowers with impacted credit histories, passed the Democratic-controlled Colorado House nearly unanimously and with almost no debate. In the Senate, most Democrats voted against the legislation after consumer advocacy groups like the Bell Policy Center managed to sound the alarm.

Yesterday, those groups joined with Senators Jessie Ulibarri and Lucia Guzman at a presser, requesting a veto of the bill by Gov. John Hickenlooper. As we’ve noted previously, Hickenlooper’s office was apparently not party to the deal that greased this bill through the legislature just before adjournment, and both sides are presently lobbying his office for and against signing the bill into law.

As these remaining steps in the process play out, many observers, including readers of this blog, have rightly asked the question–just how did this plainly anti-consumer legislation make it out of the Democratic-controlled Colorado House? Why did so many Democratic representatives, including some pretty lefty liberal types, vote for a bill directly counter to the interests of working families they are charged with defending? Especially a last-minute bill so obviously being slipped in under the wire?

The answer to this question may be as simple of the identity of the lobbyist whose job it was to pass the bill. Megan Dubray is the registered lobbyist for Springleaf Financial, one of the two major lending companies who would benefit most from House Bill 1390’s dramatic hike in subprime personal loan interest rates. If Dubray’s name rings a bell to you, it’s because she used to be the Deputy Communications Director for former Democratic House Speaker Mark Ferrandino.

In short, Dubray is a friendly face to Democrats in the Colorado House majority, and we have to assume that relationship played a role in both the late introduction of House Bill 1390–which required the consent of House leadership–and its quick passage through the House with most Democrats in support. The difference between House Democrats’ overwhelming support for House Bill 1390 and the opposition encountered from most Senate Democrats can be at least partly accounted for by Dubray’s role in lobbying for the bill.

Assuming this version of events is accurate, does it excuse Democrats in the House? Absolutely not–no matter how outwardly persuasive a case was being made to pass this bill, or who was doing the lobbying, allowing such enormous rate hikes on loans made to people who are already in credit trouble is exploitative and morally questionable on its face. Especially considering the huge profits subprime lenders are raking in as the economy recovers, the argument that this industry would simply pack up and leave the hundreds of millions of dollars they’re making here on the table if they don’t get these rate hikes is simply ridiculous. And there’s just no excuse for so many Democratic lawmakers not realizing that.

Bottom line: all the Democratic votes in the world for this bill do not make it right. A Democratic lobbyist pushing this bill does not make it right. Whatever happens to House Bill 1390, soul-searching lies ahead for everyone who contributed to this ugly situation.

We’ll continue to update as the story develops.