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October 29, 2012 11:57 PM UTC

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

  • 3 Comments
  • 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.

Comments

3 thoughts on “In Case There Were Any Questions About Labuda’s Ties to Payday Lenders…

  1. EZ Corp is also a Pay Day Lender. I am saddened by Labuda. Apparently she cannot raise money unless it is from groups that are dishonest. Too bad for HD1

  2. It looks like Labuda is more interested in repaying her own “pay day Loans” to her campaign than worrying about her constituents. Again, too bad for HD1, and of us in Colorado.  

  3. How can a 3-term incumbent justify supporting a business practice that’s predatory in nature and directly responsible for the extremely high unemployment and foreclosure rates for Latinos and Hispanics in House District 1?  I’ll tell you how.  It all comes down to money and the influence it has on her legislative decision making capabilities.

    Yes, Rep. Labuda voted against HB10-1351 which passed with bi-partisan support and now limits the amount of interest that payday lenders can charge and the maximum amount of payday loans to $500.  In response to her “No Vote”, Rep. Labuda stated in the Colorado Statesman http://bit.ly/GHCRHP    

    “I voted against it because I think that we have recently passed a lot of legislation to reign in payday lenders, and I’m waiting to see if those procedures work.”

    Truth is Ms. Labuda, you sold out to an industry that has been proven to be predatory in nature and now you’re receiving financial support for your defense of an indefensible business practice.  This is but one of many instances in the past where you have voted against the will of the people and more on your own misguided comprehension of serious issues affecting House District 1.

    As your opponent in this most crucial election, I feel that your time in our State House of Representatives has run out.  Unlike you, I have walked every precinct in House District 1 and met with the many great people that live within our communities and, not surprisingly, your constituents have not spoken well of you.  My work ethic as a business professional has prevented me from speaking out against you and your self-serving business and political agendas.  I cannot remain silent any longer and passively watch you exploit a specific ethnic group within our community.  The Latinos and Hispanics within HD-1 deserve respect and equal representation no matter how you perceive their “lack” of political involvement.

    Be warned Ms. Labua.   After redistricting in 2011, HD-1 is now a “Minority Majority” with over 55% of the population being Latinos, Hispanics, and Asians that can easily vote you out of office this November 6th simply with the strike of a pen on a paper ballot or the touch of a computer screen.  Your actions are not without culpability.

    John Kidd – Republican Candidate for Colorado State House District 1.  http://www.johnkidd.org

    Ps. Denver Pols – Though you may wish that Rep. Labuda was with the Republican Party, please do me a great favor and change her from (R) to (D) on the HD-1 line. Freudian slip?

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