Payday Advance Company Contribution Called into Question; Allegations Dismissed
By Paul RizzoPayday Loan Writer
Complaints filed by Democratic challenger Dan Scripps against incumbent David Palsrok, R-Manistee, were dropped today by the Secretary of State, the morning after they were formally filed.
The complaints were regarding two allegations from Scripps, who is seeking the 101st District seat Palsrok currently holds, that Palsrok violated the Michigan Campaign Finance Act. Specifically, they accused Palstrok of being influenced by the payday loan industry.
Ken Silfven, spokesman from the Department of State said the complaints were dropped because Scripps provided no evidence showing Palsrok violated any Michigan Campaign Finance Act laws.
Inside the payday advance accusation: The issue stems from campaign contributions Palsrok took from the president and five members of the Board of Directors of Community Loans of America, while the Legislature was working on a bill dealing with the quick cash advance industry.
Scripps cited section 54 the Michigan Campaign Finance Act that states:
“A corporation, joint stock company, domestic dependent sovereign, or labor organization shall not make a contribution (to a political candidate).”
In other words: the money provided to the campaign via providers of no faxing payday loans was meant to influence Palsrok.
“It’s pretty naive to think that these people acting over three different states would give the maximum contribution allowed and not think they are acting for the corporation,” Scripps said when he filed the claims. “He is also the only one in the House of Representatives who has ever received a contribution from Community Loans of America.”
Scripps stated that these contributions came during a critical time, just before the bill was vetoed by Gov. Jennifer Granholm on interest rates for the Community Loans of America in January 2004 and a time when new regulations on cash advance loans were set in 2005.
Palsrok said the allegations were false and came from “a desperate candidate who is campaigning negatively four weeks before election.”
“The contributions were made at a time when I was in Lansing for a fundraiser and they could not make the fundraiser and sent me a contribution,” Palsrok said. “When someone gives me a contribution, I take it as they feel I am a good Representative and want to contribute to my campaign.”
Palsrok said he doesn’t take money for votes.
The payday cash advance bill was Senate Bill 474 and it would have capped the interest rate payday lenders charge at 13.25 percent. Palsrok voted in favor of the legislation. The governor told news services at the time she vetoed it because she felt the interest rate proposed was still too high for the borrower.
