Bi-Lo, Sell High

Recently Bi-Lo stores has tried to introduce a store card managed by Compucredit which is a plastic equivalent of payday lending. After an outcry Bi-Lo has delayed, but not stopped, plans for implementation in NC. Compucredit sees this as the thin edge of a wedge for their sub-prime lending but it is essentially a subterfuge for usurious payday lending.

Payday lending money has been an insidious influence in state politics. Though payday lending has been banned it keeps coming back like a character in a bad horror movie.

One of the big players is GA based Compucredit, which gives to NC Dems and Reps alike to influence the legislature but has given the largest contributions to Republican Senator Fred Smith who is a bank owner himself. Subsidiaries of Compucredit include Valued Services, Purpose Solutions and Aspire Visa.

In the last legislative session a bill, essentially written by Compucredit, was introduced in the NC House by Democrat Beverly Earle which would ressurect payday lending in the guise of "credit enhancement". Luckily it died.

Payday lending in other states has reduced troop readiness as soldiers in debt lose security clearances necessary for deployment. Payday lending with usurious rates and fees keeps people in debt for amounts that far exceed the amount of the original loan.

In Georgia payday money infected (unsuccessfully) the race for Lt Governor with payments to Ralph Reed from Compucredit ownership. Read What Annual Fee Would Jesus Charge? for the full story.