Controversy erupts over LV convention

Wednesday, Oct. 13, 1999 | 11:05 a.m.

Two of the nation's largest consumer groups are urging former Secretary of Education William Bennett to cancel an appearance before a National Check Cashing Association convention in Las Vegas. The convention is set for Saturday-Monday at the Venetian hotel-casino.

The Consumers Union and Consumer Federation of America sent a letter to Bennett -- author of the best-selling "Book of Virtues" -- outlining their opposition to his appearance before an association whose members offer "payday loans made at interest rates of 400 percent APR or more." An agent for Bennett said he would appear as scheduled.

Payday loans are small, short-term loans made by some check cashers at high interest rates. Borrowers typically pay $17.50 to borrow $100 for one or two weeks -- a fee critics say amounts to usury and exploitation of desperate consumers.

Responding to the consumers groups, NCCA Chairman Abby Hans said "we salute Dr. Bennett for standing strong against the outlandish behavior of these (consumer) groups ... the fact of the matter is that our members provide financial services that are needed and wanted by many Americans. We do so in a legal fashion, in full compliance with state and federal regulators, and we give back to the community where we do business."