Senator Advocates Payday Loan Oversight, Not Overregulation

Senator questioned because of donations

Sen. Tim Johnson

In a recent Associated Press story, Sen. Tim Johnson, of South Dakota, was listed as the highest recipient of campaign donations from the Online Lenders Association. Because this group includes many businesses that offer payday loans, reporters quickly tracked him down to hear is thoughts on an industry that some have deemed “predatory.”

Don’t run them out of the state

Rapid City Journal reports that Johnson, via his Communications Director Julianne Fisher, assures the public that his approach to payday loan legislation won’t be swayed by the donations. He says that certain lending practices do need oversight. However, he recognizes the need for payday loans and other short-term loans. He wants payday lenders to be able to continue doing business and providing a much-needed service.

In his own words

“It is important that truly predatory lending practices be rooted out, but it is also important that we do not enact laws and regulations that will unnecessarily restrict the offering of products and services, or borrowers’ access to credit,” Johnson said. “Were that to happen, people with poor credit histories would be forced to seek loans from completely unregulated lenders, loan sharks or other disreputable sources when they needed help paying a medical bill, affording an unexpected car repair or meeting some other unexpected cost.” ... click here to read the rest of the article titled "Senator Advocates Payday Loan Oversight, Not Overregulation"