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Archive for Friday, October 15, 2010

GOP challenges Kansas Attorney General Steve Six’s ad on payday loans

October 15, 2010

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— Republicans are accusing Attorney General Steve Six of being a hypocrite after his campaign began airing a television advertisement criticizing his Republican opponent in the attorney general's race for his dealings with the payday loan industry.

The commercial says Republican Derek Schmidt, the Kansas Senate majority leader, accepted campaign contributions from short-term loan companies and then voted for a bill that would have allowed the companies to increase the interest rate on their loans to nearly 400 percent.

In response, Republicans point out that the Democratic attorney general accepted $11,500 from the payday and car title loan companies since 2008, according to Kansas Governmental Ethics Commission records. Schmidt accepted $3,600 from the industry since 2005.

"The money he is using to pay for these attack ads comes from the same industry he is criticizing," said Ashley McMillan, executive director of the Kansas Republican Party.

Gavin Young, spokesman for Six's campaign, said voters should know Schmidt accepted contributions from QC Holdings, LoanMax, Anderson Financial Services and other payday or title loan businesses from 2005 to 2008.

He said Schmidt voted in 2005 for a bill that would have raised the interest rate payday loan companies could charge a consumer to 15 percent. The cap previously ranged from 6 percent to 10 percent for a 14-day loan. The 15 percent rate would allow companies to charge a borrower 391 percent interest in one year, the Topeka Capital-Journal reported. The bill passed the Senate, but died in the House.

"Derek Schmidt supported increasing interest rates on Kansas consumers nearly 400 percent," Young said. "That's an indefensible amount."

Schmidt also voted for a bill in 2005 that allowed payday lenders to charge 15 percent of the amount of a cash advance. That law passed.

Six would have voted against the legislation, Young said.

Young wouldn't comment on the records showing that Six took three times more campaign contributions for the short-term loan industry than Schmidt received.

McMillan said the deceptive commercial told voters something about the Six campaign.

"Steve Six claims to have returned integrity to the attorney general's office, but this attack shows he is a desperate politician who is hypocritical," she said.

Comments

think_about_it 4 years, 2 months ago

I like Steve Six but that is the definition of a hypocrite.

Ken Lewis 4 years, 2 months ago

Pay Day Loan shops are the next fertile ground for political grandstanding by attention hungry politicians. They ran out the massage joints. They want the strip clubs run out. Now its Pay Day loans. After that, tattoo parlors. A CA town already tried that one. I dont know after that. KS will be pretty sanitized.

Perhaps a law that says a man and woman cannot share a hotel room unless they are married. That was a law for many years. But they would make an exeption for higher end chain hotels of course.....thank you Mr. Lobbyist.

repaste 4 years, 2 months ago

No women ,men in same room after 10 is only football players.

Ken Lewis 4 years, 2 months ago

It is all designed to take Kansas (and America) back to the 1950s.

Steve Jacob 4 years, 2 months ago

Hope he works this hard after the election.

repaste 4 years, 2 months ago

Taking money from someone and still voting against there interest might be seen as different than being bought.

Jimo 4 years, 2 months ago

"The money he is using to pay for these attack ads comes from the same industry he is criticizing."

That's called irony.

Taking money from the same industry you're doing the bidding of.

That's called bribery.

If you can't distinguish the two, PBS runs a great public service program to help you with that:

Sesame Street.

Bob_Keeshan 4 years, 2 months ago

Well said.

Shame on the payday loan vultures for contributing to a candidate who won't simply do their bidding.

Looks like they had much better luck buying off the Legislature.

Jimo 4 years, 2 months ago

These people throw money around to lots of politicians in hope that they'll 'be receptive' when the donor calls for a favor. Six just proved to be a bad investment for these cretins.

Whether Schmidt was "bribed" or just coincidentally happens to agree is a question voters will have to answer for themselves.

Jimo 4 years, 2 months ago

It's just a coincidence that the gutting of usury laws and the rise of pay-day lending coincided with the explosion of bankruptcies.

http://www.fdic.gov/bank/analytical/bank/bt_9805.html

Every good wingnut knows that the rise in personal irresponsibility is the cause of bankruptcies. The deregulation of usury is no more connected to massive consumer debt than sunspots or my name isn't Friedrich August von Hayek-Koch.

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