NY and NJ Hate Payday Lending, Are Heavily Invested in Huge Payday Lender - Dealbreaker

NY and NJ Hate Payday Lending, Are Heavily Invested in Huge Payday Lender

Ugh, public pension investing is so complicated, you guys.
Author:
Updated:
Original:

Everyone knows that payday lending is a sketchy business. Not only has it been John Oliver-splained, but it's also illegal in a handful of states like New York and New Jersey.

Both states have actually been pretty hard on payday lenders.

Just last month, New York's chief financial regulator, Benjamin Lawsky, imposed a $2.1 million penalty on a company called MoneyMutual for trying to circumvent state laws and payday lend by doing something it referred to as "loan lead generation." And if that big check didn't hurt enough, Lawsky got MoneyMutual's "celebrity" pitchman, Montel Williams, to drop the company publicly and call them out for shady dealings.

New Jersey has been tough too, passing legislation in 2013 that legally classified payday loans as consumer fraud.

Suffice it to say that ain't no one in the Empire or Garden States messing around when it comes to payday lending.

Public pension funds in New York and New Jersey are indirect owners of ACE Cash Express, the nation’s second-largest payday lender. It’s not illegal, but it sure borders on hypocritical.

That's a scoop from Fortune's Dan Primack, who found some pretty embarrassing stuff on the public pension investment books of the New Jersey State Investment Council and the New York State Teachers’ Retirement System.

According to Primack, the two pensions invested $50 million each into something called the JLL Partners Fund V LP, which is managed by private equity company that also owns ACE Cash Express Inc., the second biggest payday lender in these here United States.

Oops.

So basically two states that are making political hay out of ending a practice that creates endless cycles of crushing debt in the poorest of American communities are tossing $100 million towards a company that is making some serious cash off the very practice they profess to despise.

Awwwwkwaaard.

Well, at least the governors of New York and New Jersey aren't harboring dreams of any higher office or anything like that.

Public pensions own payday lender that is illegal in their own states [Fortune]

Related

elevate-ipo

Now As Good A Time As Any To IPO An Online Lender

What markets need right now is an online lender with a typical effective APR of 156 percent.

Making Your Wife Step Away From Her Finance Job Is The Hot New Republican Primary Trend

If you want to be the Republican nominee, it's best that you get your successful wife out of the corner office before anyone notices she makes a lot more money than you.

Cuomo.Hedge.Albany

Andrew Cuomo Hoping New Yorkers Distrust Hedge Funds More Than They Distrust Albany

It's bad that New York is investing with hedge funds since there are not hedge funds in New York(?)

MulvaneyNazi

Ungrateful Payday Lenders Sue Mick Mulvaney For Being Too Slow

Repealing regulations through the usual channels is just too cumbersome.

Andrew Cuomo Finding Good Help Hard To Find While Taking Overtly Political Potshots At Wall Street

Since Andrew Cuomo can't find a new chief banking regulator, Jamie Dimon would like to put his old lawyer's name in the sorting hat.

Wall Street Poised To Take Marco Rubio Home Because It Doesn't Want To Be Alone Tonight

Last call for alcohol... and realistic Presidential candidates.