CREW Releases Payday Lenders Pay Up - the First Ever Study on the Payday Loan Industry`s Efforts to Gain Influence in Washington

WASHINGTON--(Business Wire)--
Today, in light of new legislative efforts and ever-growing controversies over
the role of payday lenders in Americans` lives, Citizens for Responsibility and
Ethics in Washington (CREW) released a new study entitled, Payday Lenders Pay
Up, which examines the payday loan industry`s efforts to gain influence on
Capitol Hill.

The first-of-its-kind study explores how the payday loan industry has stepped up
its lobbying and public relations efforts as well as its campaign contributions
to federal candidates in the face of greater congressional scrutiny of industry
practices. In 2006, Congress capped the interest rate on short term loans to
military members at 36%. In the 110th Congress, Sen. Richard Durbin (D-IL)
dropped a bill to apply the same cap across the board and he reintroduced that
legislation earlier this year.

CREW has examined those campaign donations, which demonstrate how an industry
with a previously low federal profile seeks to influence members of Congress to
achieve a particular policy outcome. CREW found that the payday loan industry
doubled its lobbying expenditures from $2,045,000 in the 109th Congress to
$4,182,550 in the 110th Congress and doubled its campaign donations over the
past three election cycles.

CREW also ranked the top 15 recipients of payday related campaign contributions
over the 2008 campaign cycle. Sen. Tim Johnson (D-SD), chair of the Senate
Subcommittee on Financial Institutions, was the leading recipient of payday
contributions in the 2008 cycle, taking in $47,400. Rep. Luis Gutierrez (D-IL),
chair of the House Subcommittee on Financial Institutions - who has taken the
lead on a payday reform bill that has been criticized by consumer advocates,
editorial writers, and the payday industry - was the 11th leading recipient of
payday loan related donations, taking in $18,500 last cycle. Sen. Richard Shelby
(R-AL), ranking member of the Senate Banking Committee, was the Republican who
received the most from the industry, accepting $25,560, ranking him 4th overall.

Melanie Sloan, executive director of CREW, said today, "Payday Lenders Pay Up
shows the payday loan industry is following the familiar path already cleared by
other industries suddenly confronted with congressional oversight. Payday
lenders have joined the ranks of defense contractors, investment funds and
others who influence the legislative process through lavish political
contributions, expensive PR campaigns, and strategic lobbying."

Click here to read CREW`s report.

Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit
legal watchdog group dedicated to holding public officials accountable for their
actions. For more information, please visit www.citizensforethics.org or contact
Naomi Seligman at 202.408.5565/nseligman@citizensforethics.org.

Citizens for Responsibility and Ethics in Washington (CREW)
Naomi Seligman
202-408-5565
nseligman@citizensforethics.org

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