The Check ‘n Go situation in DC, updated today at the Enquirer, has a local angle that NixGuy has been following (here and here, with much more at his site).
John Rabenold, a lobbyist for Check ‘n Go (CNG), is running for Representative in Ohio’s 35th District as an alleged (cough, cough, blech, retch) Republican. He has raised a substantial portion of his overstuffed campaign war chest from the payday lending industry.
Mr. Rabenold works in a shady industry that (what a surprise) attracts shady people (paragraphs are in different order than in the original article). See if you can find the interesting admission in the excerpt:
In a news release, the company (Check ‘n Go) accused (the company’s former director of operations for the District of Columbia Michael) Donovan and two other former employees who also spoke at the news conference (last week) of conspiring with the Center for Responsible Lending to tarnish the company and the payday loan industry.
Check ‘n Go claims in its lawsuit that Donovan stole confidential business information about the company in violation of an agreement he signed not to disclose such information. The lawsuit also claims Donovan misled the company into hiring him by using a false Social Security number and lying about his criminal history.
The company is seeking unspecified damages from Donovan.
The news conference that Donovan spoke at was in support of legislation before the District of Columbia City Council that would cap payday-loan interest at 24 percent a year, the same rate charged by banks and credit unions. The council approved the cap Tuesday.
“The average Check ‘n Go customer in the District (of Columbia) is continuously in debt to the company for at least a year, and it’s not uncommon to see customers trapped for several years,” Donovan said last week. “The repeat borrower is vital to our business model.
The admission is that by asserting that Donovan supplied a false SSN, CNG didn’t successfully verify Mr. Donavan’s Social Security Number before hiring him. I’ll leave it to readers to come up with reasons why and related implications.
The danger that Mr. Rabenold’s primary “interest” as State Representative will be protecting his industry from meaningful regulation of its usurious practices should be evident to anyone. It’s a risk the voters of the District should not be taking — regardless of the possible appeal of his other issue positions. Even if he abstains from relevant votes, as promised in his meeting with an SOB screening committee a month ago, his years as an aide and as a lobbyist will give him insider influence on others’ votes that he doesn’t deserve.
As to Rabenold’s issue positions, I think the most telling point made by Matt about the screening interview was this:
Mr. Rabenold appears not to have given ….. a whole lot of thought in to what he’d like to accomplish if he won the election.
My take: The lack of thought is likely related to his payday lending industry-driven agenda. Apparently, little else is important.
Mr. Rabenold’s opponent, Eric Minamyer, on the other hand, has a blowaway bio. This is what what I said in June 2005 when I attended a Second Congressional District debate (Minamyer finished fifth in a field of 10, in a race ultimately won by Jean Schmidt):
(Minamyer) Read off a no-brag, just-fact resume of solid accomplishment that made you want to crawl under the chair (pew in this case) and wonder what you’ve been doing all your life: A non-professional elected politician for 16 years (now 18 — Ed.); 33 years in the Navy or Naval Reserve; served in Gulf War I, Afghanistan, OIF, with two near-death experiences; Inspector General; Hamilton County Deputy Sheriff; Lawyer.
Oh, by the way, Minamyer is solid on common-sense conservative issues, is prolife and pro-traditional marriage (but I’m being redundant). When he’s “on,” he is a very compelling speaker; I rated him second-best in the group of 11 candidates at the bipartisan June 2005 forum mentioned earlier (I gave the top rating to Tom Brinkman and third place to Jean Schmidt).
So, let’s see:
- Eric Minamyer, three-war vet — versus John Rabenold, payday lender.
- Minamyer, the longtime public servant — versus Rabenold, the lobbyist.
- Minamyer, with an agenda for improvement — versus “not a whole lot of thought” Rabenold.
Mr. Check ‘n Go needs to be Check ‘n Gone.
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UPDATE: Among the things Nix has to say today –
Oh now this makes me feel MUCH better about the payday lending industry. Not only do they rip people off, they hire convicts without so much as a background check! Nice.
With any luck, Donovan can get some decent legal representation, these guys do not want to go to the discovery stage of a lawsuit.
Interestingly enough Mr. Rabenold is not defending his company anymore. Did he lose his job as corporate spokesman?
UPDATE 2: Mr. Rabenold’s breezy assertion that he will abstain from votes relating to the business he works for has troubling implications that need to be thought through.
A representative’s conflicts of interest should be very rare, not frequent. Rabenold is in effect telling 35th District voters that they will have no say in the Statehouse on any matter relating to financial services industry regulation. After all, Mr. Rabenold, who has said that he will continue to be a CNG executive but will no longer be a lobbyist(!), should recuse himself from matters relating to his bank and credit union competitors. At the extreme, if matters relating to financial-industry regulation are folded into the state’s biennial budget, it seems that Mr. Rabenold would be compelled to abstain from that too. In fact, anyone favoring a bill subject to a close vote will put something relating to financial services into his or her bill if they think Rabenold will oppose it, to prevent him from voting.
All of this has the potential to leave a 35th District “represented” by Mr. Rabenold with little or no meaningful voting representation. So what am I missing?
UPDATE 3: Nix updates with a great riposte to a comment defending CNG.