Spend any moment driving around Nashville, and you will notice lending that is payday sprouting like weeds over the town’s major pikes. Over the country, the guts for Responsible Lending states, you will find two payday financing storefronts for almost any Starbucks.
Nevertheless the soil is particularly fertile right here. While a number of states have actually prohibited payday lending вЂ” that has received a track record of exploiting poor people with sky-high interest loans вЂ” The Tennessean reported in April 2013 that Tennessee has welcomed it with lax legislation. A 2006 research from Ca State University Northridge revealed almost five times more payday lenders in Tennessee than McDonald’s places.
Correlation doesn’t invariably equal causation. But by way of a strange coincidence, the industry’s tendrils have discovered purchase within Tennessee state and neighborhood politics for quite some time. And also this election period is not any various.
A scan of state monetary disclosures reveals at the very least 66,750 in governmental contributions through the payday lending industry up to now this present year, either offered right to applicants or funneled through governmental action committees. The biggest player is Advance PAC, the political-money supply of Advance Financial, that was started in Franklin and boasts 56 locations in Tennessee. (more…)