NewswireTODAY - /newswire/ - Richmond, VA, United States, 2008/01/11 - Delgate Mark Sickles of Fairfax is wrong on his understanding of payday lending studies, wrong on payday lending reforms, and wrong for the people of Virginia.

Delegate Mark Sickles makes the case for payday lending in Virginia, but falls short of explaining why lenders should continue to be allowed to charge triple digit interest rates. Delegate Sickles represents citizens of one of the wealthiest localities in the United States. While Del. Sickles certainly has constituents who have fallen victim to predatory payday lenders, the affects of this predatory debt trap are greater in areas like Richmond and Hampton Roads. Delegate Sickles purports to speak for these victims, yet has no understanding of the payday debt trap.

Payday lenders encourage long term debt by loaning more money than victims can actually repay. The goal is to keep the borrower “on the hook” as former Check ‘n Go manager William Harrod states, paying that same fee every two weeks. The payday lending business model is dependent upon individuals paying that fee over and over again, as indicated by former Check ‘n Go employees William Harrod and Abraham Hall in Virginia and Washington DC. These “fees” amount to triple digit interest rates, and the payday lending business model is dependent upon extracting them from hard working citizens of the Commonwealth of Virginia.

Delegate Mark Sickles appears to not have a problem with triple digit interest rates, being charged to our hardest working citizens. The Delegate also has no problem accepting large amounts of cash from predatory payday lenders. In 2007, payday lenders donated a total of $10,996 to Mark Sickles reelection campaign. While one could question why the Delegate would need to take nearly $11,000 dollars from predatory lenders in an election cycle where he was running unopposed. One might also ponder whether or not Del. Sickles public advocacy for predatory lenders has something to do with his healthy payday. The people of Virginia need to be reminded that Delegate Sickles $11000 in contributions comes off the backs of the middle class and working poor, the victims of this every growing cycle of debt that the Delegate seems so interested in making worse, not better.

CapAmerica is an organization dedicated to eliminating predatory payday lending across the country. We will work to support victims of organizations that ensnare people in a cycle of perpetual debt, and support alternative programs that meet small loan needs. We will work to encourage predatory lenders to change their usurious practices, and provide support to employees of such organizations that wish to come forward and report illegal or unethical activities.

Agency / Source: CapAmerica

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