Chris Dodd: 'Fighting for Consumers' While Taking Cash From Pawnshop Owners

The hits just keep on coming for the odious Democrat from Connecticut.

U.S. Sen. Christopher Dodd, who has won praise from consumer groups for taking on credit card providers over predatory lending practices, has collected thousands of dollars in donations from people affiliated with the so-called payday loan industry.

The Democratic senator raised more than $44,000 from pawnshop owners and other businesses that provide high-interest loans, often to those with bad credit, according to campaign finance reports. The amount, while a fraction of the $1.05 million that Dodd brought in during the first quarter of 2009, nevertheless raises questions among those who scrutinize the link between fundraising and public policy.

Dodd is chairman of the Senate banking committee, and a bill being fought by the industry that would cap the annual interest rate on consumer loans at 36 percent has been referred to the committee.

"It's not surprising to me that he would be receiving money from payday lenders and others," said Sheila Krumholz, executive director of the Center for Responsive Politics, which tracks the influence of money in politics.

Naturally, his spokesthing says he's fighting for consumers.

"Sen. Dodd has spent his career fighting for consumers against abusive lending practices, including passing the credit card act he recently passed out of committee," DeAngelis said in an e-mail Friday. "He will continue to stand up for consumers as the banking committee considers additional legislation in the coming months."

Dodd is facing a tough political fight as he heads toward the 2010 election. A poll by Quinnipiac University released earlier this month found that 54 percent of respondents did not believe he was "honest and trustworthy," and showed him losing to the two Republicans who have announced their intent to challenge him, former U.S. Rep. Rob Simmons and state Sen. Sam S.F. Caligiuri.

Dodd has been accused, among other things, of being too cozy with powerful Wall Street financial firms. In particular, he has faced sharp criticism for his role in the legislation that protected bonuses for executives at American International Group, a giant insurer receiving federal bailouts.