October 29, 2012 11:57 PM UTC

In Case There Were Any Questions About Labuda's Ties to Payday Lenders...

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• by: Colorado Pols

State Representative Jeanne Labuda, a lock to win her last-ever reelection campaign against quixotic Republican opponent John Kidd, caught flack during her divisive primary with activist Corrie Houck for comparing payday-lending customers to “alcoholics.” One of five Democrats to vote against the ultimately-successful bill to limit payday loan interest rates, Labuda has always been seen as something of an ally of the payday lending industry as a whole.

And, if her campaign finance reports are any indication, industry leaders are all too happy to return the favor.

Among contributions from Speedy Cash executives and the America Cash Advance Centers PAC, Labuda last month received a maxed-out check from William Allan Jones, the CEO of Check Into Cash and a trailblazer in the payday lending business credited with “pioneering the retail concept of providing short-term cash advances for a fee.” The so-called “founder” of payday lending has also been criticized for his “predatory loan shark” practices and esurient lifestyle — he owns a 400-acre home, a 223 acre ranch in Wyoming, a 157-foot yacht, and a private regulation-sized football field.

It’s hard to find a starker contrast between a business owner and his patrons anywhere.

Of course, ignoring the criticisms levelled against his industry’s practices, it’s fair to say that Jones wants to continue doing business in Colorado and personal contributions allow him to support candidates that will keep Check Into Cash locations open across the state. Indeed, over the past ten years the company has spent over $10,000 here supporting legislative candidates and leadership PACs.

Jones injected himself personally into Colorado politics for the first time this year, however, writing checks to HD-18 Republican candidate Jennifer George, SD-19 Republican Lang Sias, and, of course, HD-1 Democrat Jeanne Labuda. Unlike those Republicans, however, Labuda isn’t in a competitive race that could determine the partisan makeup of the Colorado legislature or the future of payday lending. She’s going to win with or without Jones’ support.

His contribution, then, looks less like an effort to protect his business from regulation and more like a reward for Labuda’s loyalty over the years.

Those are bad optics for the Denver Democrat. Labuda claimed to have voted against payday-lending regulation because she wanted to “see if existing procedures work.” That may be true, but whatever her intentions, accepting this contribution makes it appear as though she’s in the pocket of one of the most reviled leaders of the payday lending industry.

Too bad for Corrie Houck that Jones didn’t contribute during the primary.