Payday Lenders funding Arkansas Democrats

According to research conducted by Arkansans Against Abusive Payday Lending and reviewed by Arkansas Business, known owners and operators of payday lending stores have funneled more than $60,000 into political campaigns for the 2006 election cycle, almost all of which went to the Arkansas Democratic Party or to Democratic candidates. ... With $36,800 in donations, the Arkansas Democratic Party is the biggest political beneficiary of payday lenders for the 2006 election cycle. Next in line are specific Democratic candidates: Dustin McDaniel, the party?s nominee for attorney general, and incumbent Rep. Mike Ross each received $10,000. Attorney general and gubernatorial hopeful Mike Beebe received $4,000.

According to Peggy Matson, executive director of the State Board of Collection Agencies charged with regulating payday lenders in Arkansas, these lenders are currently not subject to the Check Cashers Act of 1999, the controversial law that allowed the payday lending practice to expand throughout the state.
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