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Payday lenders spare no expense to educate legislators and public

July 25, 2008 | Virginia, regulation | Comments (1)

Richmond’s InRich.com has a story today about the amount of money the payday lending industry spent on “lobbying” Virginia state government this past session.  The number, $3.8 million, is intended to be shocking — and it is… until we break it down:

About $3 million of the payday lenders’ expenditures went for advertising and grassroots lobbying. The Community Financial Services Association of America, an umbrella group for the industry, spent $1.9 million on radio, television, print and Web advertising. Virginians for Financial Choices spent $928,000 on grassroots efforts.

Translation: lenders spent nearly all their money educating legislators and citizens, through advertising, on a topic that is rife with inaccuracy, myth, and fear; and, spent another big chunk on empowering local people who felt strongly about financial freedom to be able to organize and have their voices heard.  The rest of the money was spent on staff, expenses, lawyers, etc.  Why does that warrant the outrage that is not-so-subtly implied in this article?

Somehow, Dominion Power hired 11 different lobbyists, flew a legislator to Denmark, and spent who-knows-what and it barely registers a mention.

Payday Pundit thinks InRich.com refutes this article with the article.  Quite a neat trick.

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Comments»

1. S Kasich - July 25, 2008

Wow, you’re right! Payday lenders don’t make any money. $3.8 million to “educate the public” must be really hard to come by. Not to mention you’ve had some pretty shabby conferences, awful African mahogany office space and terrible travel accommodations.

2006 Conference in La Quinta, California
http://www.cfsaa.com/downloads/2006_Conference_Brochure.pdf

2008 Conference at Marriot Resort & Spa in Las Vegas
http://www.cfsaa.com/downloads/CFSA%20Attendee%20Broch%2011.19.07.pdf

2009 Conference in Orlando, Florida
http://www.cfsaa.com/conference_information.html

http://www.jonesmanagement.com/airways.htm
http://www.jonesmanagement.com/our_office.htm

I really wish I could help, but it seems that the website to “empower local people” isn’t accessible to the public: http://www.vafinancialchoices.org.

Where do I sign up?