Merkley urges crackdown on 'payday' loans

In the tight race for the Democratic nomination, Jeff Merkley and Steve Novick are, quite expectedly, approaching policy issues—including the mortgage crisis—from different angles.

While Novick yesterday tied an increasing oversight of Wall Street as a means to prevent mortgage foreclosures, Merkley sent out his own statement today which focused on clamping down on payday loans.

As the housing market worsens, and many Americans fall behind on their mortgage payments, an increasing number of people are turning to short-term, high-interest loans. Merkley today advocated that the federal government act to regulate these ‘payday loans.’

"Payday lenders are profiting off of innocent families who need help.  We must change the system in Washington D.C. to protect families from predatory loan scams and get our economy growing again,” Merkley said.

“We need leaders in Washington D.C. to stand up to these big special interests and do what's right for families," he continued in a statement.

Merkley also cited his history on “predatory” lending in Oregon, including advocacy for the Predatory Lending Cap Act of 2007, which imposed a 36 percent interest rate cap on state-regulated consumer loans.