Payday Pundit » Texas

Comment of the Day

Payday Pundit — Tue, 14 Dec 2010 17:50:35 +0000

On the Texas “showdown”:

What a joke? Don’t even bother getting the other side’s viewpoint or even look up the CRL’s bogus statistics to see if they are even true!

Texas showdown

Payday Pundit — Tue, 14 Dec 2010 13:46:05 +0000

At least that’s the way one television station is playing it.

Trouble in Texas

Payday Pundit — Mon, 13 Dec 2010 13:33:36 +0000

From the story:

Sen. Wendy Davis, D-Fort Worth, reviving one of her top legislative priorities, introduced legislation Friday to crack down on storefront lenders that she said prey on vulnerable Texans by charging usurious fees and interest rates.

Former House Speaker Tom Craddick, R-Midland, and Rep. Eddie Rodriguez, D-Austin, introduced companion measures in the House.

The bipartisan legislation, which targets payday loans, car title loans and tax refund anticipation loans, has the backing of a broad-based coalition that includes AARP, the Christian Life Commission of the Baptist General Convention of Texas and Catholic Charities Diocese of Fort Worth.

Supporters said the measures are designed to close a loophole that has spawned more than 2,800 short-term lending outlets that are not subject to the same oversight as banks and credit unions. Borrowers often refinance the original loan multiple times, with interest and fees often exceeding 500 percent of the original loan amount, said Davis and other supporters.

How is it a “loophole” for companies to get a license under a state law? We’ll keep an eye of this and let you know if this becomes a real threat.

Dallas program unspectacular

Payday Pundit — Mon, 06 Dec 2010 16:25:55 +0000

The “Bank on Dallas” program announced with great fanfare last year is less than a wild success. From the story:

The city’s Bank on Dallas program was launched with the hope of weaning thousands of residents off fee-heavy check-cashing and payday-lending companies so they can begin to establish solid personal finances through use of traditional banks.

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{The President of Momentum Texas}, who the city paid $9,500 to get the program going, said numbers should improve. And the 81 accounts opened represent only 40 percent of reports from the 15 participating banks and four participating credit unions for the program’s first quarter.

Banked

Payday Pundit — Thu, 18 Nov 2010 20:05:01 +0000

This is about the third time this year the Dallas Morning News has referred to payday lending customers as “unbanked.”

Wrong!

Payday Pundit — Wed, 17 Nov 2010 03:11:19 +0000

This reporter doesn’t know that payday loans customers have bank accounts.

So, what’s your alternative?

Payday Pundit — Fri, 30 Jul 2010 15:09:43 +0000

Borderzine spends a good third of this article discussing folks finding themselves in need of short-term credit and general credit tightening denying even consumers with good credit scores small-dollar loans that they need between paychecks.

It seems unreasonable then to jump into a criticism of payday advances, the one resource that consumers have for these types of loans. The article is clearly poorly research, asserting that there are few regulations (in Texas, of all places, where there are quite a few) and repeating the cycle of debt argument without bothering to find out about the no cost extended payment plan.

Well, well, well

Payday Pundit — Tue, 27 Jul 2010 15:54:45 +0000

An interesting chat log from the Dallas Morning News today. A reporter who’d written a pretty negative story on payday lending answers reader questions and admits, among other things, that PDL is cheaper than many alternatives, that consumers appreciate having the service available, and that the fees are very transparent.

Some noise in Texas

Payday Pundit — Thu, 15 Jul 2010 18:00:54 +0000

Of, someone is proposing a 36% rate cap.

Texas alternative

Payday Pundit — Tue, 23 Mar 2010 13:14:29 +0000

We welcome the competition from these Texas credit unions:

The new product will be launched in participating credit unions on March 30, the league said, after the CUs have trained their staff in how to “sensitively” offer the product.

“Our goal is to keep more money in the hands of the borrower,” said Natasha Melugin, REAL Solutions program director for the Texas league. “Hundreds of payday, auto title and other small predatory lenders litter our streets, preying on financially distressed consumers. These ‘rescue’ loans intended to bailout the borrower in fact keeps them in a vicious debt-cycle.”

Unlike most payday loans available in Texas, the new loan products will carry a much lower interest rate at 18%. The loans will also offer a longer repayment term than other payday loans and require the borrowers to deposit 10% of the loan amount in a savings account.

Longer repayment and other requirements. Not exactly an apples-to-apples “alternative” but good luck to them.