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Payday lenders support Mitt Romney

Since Barack Obama passed financial reform that included the Consumer Financial Protection Bureau, it’s no surprise that payday lenders are coming out for Mitt Romney who opposes more regulations to protect consumers in this area.

Major payday lending companies and their owners contributed more than $250,000 last month to a super PAC supporting Mitt Romney for president, federal reports show.

The contributions to Restore Our Future come from some of the largest players in the industry, which is coming under increasing scrutiny from federal regulators. The Consumer Financial Protection Bureau, created by Congress in 2010, recently released its examination manual.

“They’ve never been subject to federal supervision before,” said Jean Ann Fox of the Consumer Federation of America, an industry critic. “The industry has always written big checks for state-level fights, but now the federal government is suddenly much more important.”

Romney has not addressed payday lending issues on the campaign trail, but he has been critical of regulations in general. “Under President Obama, they are multiplying like proverbial rabbits,” he said Monday.

There is a big philosophical difference between Mitt Romney and Barack Obama on financial regulation, so this is just corporations putting money out there to protect their self interest. The question then becomes what is in the public’s interest?

Payday lending is a huge ripoff for consumers. If this is something your do – be smart and stop it. Get a bank account and start using direct deposit of your checks. Create a budget so you aren’t living paycheck to paycheck.

  

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