"Predatory' lenders branded as "loan sharks'

Playing off of the popular "Shark Week" theme, a man in a shark costume, along with several protestors, chanted outside U.S. Rep. Blaine Luetkemeyer's office on Wednesday in protest of so called "predatory" lenders. The coalition, made up of representatives from several advocacy groups, asked for Luetkemeyer to support legislation aimed at limiting rates by these lenders, also referred to as payday and title loan companies.
Playing off of the popular "Shark Week" theme, a man in a shark costume, along with several protestors, chanted outside U.S. Rep. Blaine Luetkemeyer's office on Wednesday in protest of so called "predatory" lenders. The coalition, made up of representatives from several advocacy groups, asked for Luetkemeyer to support legislation aimed at limiting rates by these lenders, also referred to as payday and title loan companies.

A Missouri group used this week's Discovery Channel "Shark Week" programming to highlight problems they see with "predatory" lending companies like "payday" and "title" loans.

"These guys are, really, loan sharks - they are taking the arms and the legs off of folks," Robin Acree, executive director of the group GRO (formerly Grass Roots Organizing), told reporters and supporters gathered in the entrance way to U.S. Rep. Blaine Luetkemeyer's office in Jefferson City.

"This is not a joke, either - these are loan sharks who use all types of intimidating tactics on people."

Randy Kiser, of the faith-based group Communities Creating Opportunity, added there's nothing wrong a business making money and offering a service.

"The problem comes in when they have 300, 400 or 500 percent interest rates in the long run," Kiser said, "when they're making this kind of money off of people who are in desperate situations anyway."

Their protest was aimed at businesses that make short-term loans, often to poor people or those with poor credit, who don't or can't get more conventional loans from banks or credit unions. The groups chose Luetkemeyer's office because they want his support for tougher federal rules on the "title loan, installment loan, online loan and storefront" industry, Acree said.

"A whole lot of folks don't have enough money for basic human needs. The payday loan companies are very tempting to someone who's gotten a utility disconnect notice or a rental eviction notice," said Jeanette Mott Oxford, executive director of Empower Missouri (the former Missouri Association of Social Welfare).

"One out of six Missouri families is food-insecure, so it's just a really prevalent problem in our state. ... It's really easy to think that's the place that's going to help you out - and then once you're sucked in, it's hard to, ever, get out again."

Kiser told Luetkemeyer's Jefferson City office staff that an open letter from the congressman to the federal Consumer Financial Protection Bureau "would show so much support to the communities in his district - to let folks know, "Look, I stand with my communities.'"

He also said such a letter would an effect on the federal agency.

"My primary group that I work with are single adults - often single parents - who struggle with jobs and taking care of their children and with food," said the Rev. Jeanie McGowan, former "Singles Minister" at Jefferson City's First Baptist Church, and a representative of Faith Voices of Jefferson City at Wednesday's protest.

"And so many of them don't think there's anything else available - and so this is a quick fix."

She also argued: "There's more payday loan places than fast food places, in Jeff City and all over the state. And they intentionally prey - they intend to get them caught into this spiral of debt."

Luetkemeyer spokeswoman Kristina Weger in Washinton, D.C., told the News Tribune the congressman "recognizes the importance of preventing predatory lending practices and strongly supports safeguards to ensure that consumers are protected.

"He also appreciates the significance of ensuring that Americans who do not qualify for more traditional financial products, are able to access legal and regulated credit options, including short-term and small-dollar loans."

She didn't comment on the groups' other complaint - that Luetkemeyer is among the top recipients of campaign contributions from the lending industry.

"We want Rep. Luetkemeyer - we want all of our Congress people - to have our back, to beat them back, and not take this sleazy, slimy money from the dark waters of the most predatory lending industry that I've ever come across," Acree said.