Car-title lenders and internet lenders have stepped up their campaign contributions in recent years.
So far this election cycle the industry has given about $840,000 and more campaign cash may be on the way before Election Day.
Will the next General Assembly crack down on internet lenders who operate outside the reach of state regulators? Will car title lenders face new scrutiny of their business model, which allows for 300 percent interest rates in Virginia while neighboring states are capped at 36 percent?
Bob Denton at Virginia Tech says that’s why businesses in this industry are spreading their money around this year. “There’s no question that special-interest money is given to people not so much to bribe them in terms of their vote, but they are certainly going to support candidates who have been sympathetic to their industry or their positions or their policies in the past.”
Internet lenders are giving more this year than in previous years, although car-title lender LoanMax is the most generous. Financial disclosure records posted to the Virginia Public Access Project show the Georgia-based company gave about a quarter of a million dollars this election cycle.
“Car title loans are a huge business in Virginia,” says Stephen Farnsworth at the University of Mary Washington. “You’re talking about a relatively vulnerable population, and that environment is the kind of place where Democrats might be ready to legislate.”
Car-title lenders and internet lenders and other kinds of businesses that offer high-interest loans contribute to Democrats and Republicans, especially ones who sit on committees that oversee the industry.
***Editor's Note: The first two paragraphs of this story have been edited to provide more detail.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
