Monday, March 21, 2005

More on debt

Geeky Mom's comment on my previous post mentioned payday loans in passing. Payday loans--for those who don't know--are cash advances on paychecks, and they come with large fees. So large, in fact, that some states are taking a hard line against those banking establishments. The North Carolina Attorney General filed suit against at least one payday lending bank.

So I have to ask: how are the actions of the payday lenders worse than those of credit card companies? Yes, I know that, technically, what the payday lenders do runs afoul of some states' usury laws. But both industries market themselves toward, among others, people without substantial means. Both industries smack their customers with exorbitant fees. In fact, both industries only stand to make good money if their customers do not pay them back by the agreed-upon date. So why is it that states are not afraid to piss off payday lenders, and yet Congress is bending over backward to help the credit card companies?

Could it be because MBNA is one of the biggest (if not the biggest) contributors to Bush-Cheney (MBNA gave more than $3M to Bush-Cheney 2000)?

Could it be because, in addition to MBNA, American Express and Capital One are also near the top of contributors? And that payday advance companies are farther down that list, contributing much less?

8 Comments:

Blogger Phantom Scribbler said...

Hey, when did you get all intelligent and well-informed 'n' shit? I thought this was an empty-headed mommy blog!

Seriously, the Bush/credit card industry connection is one of those facts that we ought to be shouting from the rooftops come the next election. Thanks for illuminating it for us.

11:12 PM, March 21, 2005  
Blogger Angry Pregnant Lawyer said...

After a day like today, I have to vent at something, and it sure as hell isn't going to be my poor sick boy (took a trip to the doctor's tonight--woohoo--and he's still coughing nonstop), or my better-than-I-deserve husband who keeps telling me that he couldn't have done the parenting thing with anyone else.

So take that, Congress! GRRRRR!

11:28 PM, March 21, 2005  
Blogger Laura said...

Glad my debt situation can create another informative post. :) I agree with PS above; we should really point out this connection. Oh, and I have an MBNA card. I'll be cutting that up now, thank you.

9:06 AM, March 22, 2005  
Anonymous Anonymous said...

The Reeps aren't the only ones - my congressman, James Moran, DEMOCRAT, took a below-market-rate mortgage on his house for somewhere in the neighborhood of $400000, then advocated the MBNA line and voted for them in the predecessor bankruptcy bill to this one. There are a lot of pigs at that trough.

9:21 AM, March 22, 2005  
Anonymous Captain Louis Renault said...

I'm shocked, shocked to find that money is influencing politics.

10:23 AM, March 22, 2005  
Blogger Phantom Scribbler said...

This could be the start of a beautiful friendship.

3:27 PM, March 22, 2005  
Blogger Phantom Scribbler said...

And I hope the boy is better soon, APL. A day with the sick kid deserves some venting.

3:29 PM, March 22, 2005  
Blogger Yankee T said...

When Worlds Best Bleeding Heart Attorney and I got together, I was poor as a church mouse, as they say, and only owed money on a car. WBBHA, on the other hand, was a Law Student and had a TON of credit card debt. It freaked me out. I was in a money panic all the time. I, too, was raised with the "you don't buy it if you can't afford it" kind of mother. WBBHA (sadly) inherited some money and (happily) paid off her credit cards, and we are back to only owing one one thing-our house. Because she read a lot, we knew about predatory lending, which is what most of this is, and we managed to crawl out of the hole, vowed to never owe again (provided,as PS points out, we are lucky enough not to).

On another note, Older Daughter had asthma when she was little. She outgrew it at 4 and has never had another episode. Beware sideline cigarette smoke forever, though. It'll kill ya'!

5:18 PM, March 22, 2005  

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