These parasites are taking over my town

[cfsteak]

I've got 6 of these within a mile of my house
Can someone justify a Democrat taking money from these creeps
I always figured these were where Republicans want poor people to bank

Part1
http://www.texastribune.org/stories/2009/nov/19/part-one-debtors-treadmill/

Part2
http://www.texastribune.org/stories/2009/nov/20/debtors-treadmill-part-two-political-payday/

[sonias]

1. Pay day loan companies always flourish during tough economic times

They won't be going away anytime soon. And yes they are everywhere in Texas - every major urban area as well as rural areas. There are people living pay check to pay check all over Texas. And as long as there are people to be preyed on these parasites will be there to feed.

(snip)
Texans who get caught in a cycle of high-interest, short-term loans shouldn't be surprised that they get no help from the state. The industry has been unregulated in Texas since 2005. Consumer advocates and some lawmakers maintain that allows companies to charge exorbitant interest and fees that trap poor Texans on a treadmill of debt. Payday and auto-title lenders like The Cash Store, Cash America and Ace Cash Express have argued in the past that they provide a critical service many Texans need and can get nowhere else. (Those lenders and several lobbyists who represent the industry did not return calls requesting comment for this story.)

(snip)
When it comes to short-term, high-interest loans, Texas is the “wild, wild West,” said Ann Baddour, senior policy analyst at Texas Appleseed, an advocacy group for low-income Texans. There are no limits on the fees the companies can charge, and no restrictions on how the companies attempt to collect their debts. Lenders make millions off the charges that pile up as consumers, unable to keep up with the growing costs, repeatedly renew the loans, incurring still more charges. “It starts out as an emergency and ends up being a debt trap,” she said.

Note how they operate unregulated in Texas. The Lege and the AG's office won't touch them.

Sonia

[texastoast]

2. Dereg has made it okay for loan sharks to hang a shingle

More Raygunomics and Grammonomics.

That said, everyone has to realize that we all need to live within our means as much as possible. Wanting THINGS NOW got a lot of folks in this trouble. Flame away, but I really think that Dave Ramsey has it very right.

[douglas9]

3. 10 Shocking Facts About Payday Loans

4. In the 29 of 35 states where payday lending is legal there are more payday locations than McDonalds

http://www.paydayloans.org/10-shocking-facts-about-payday-loans/

[flamin lib]

4. Here is a brief history of unsecured lending in the US

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1367396

[sonias]

5. Thanks for linking to that, flamin lib

And pulling those links together. It's great information to have.

I think a good Texas Representative should take this up as an issue to address next session. We need to be thinking which of our Reps might want to carry a bill that would regulate pay day loan vendors in Texas.

Ideas anyone?

Sonia

[BlueCollar]

6. Lon Burnam out of Fort Worth

Isn't afraid to stick his neck out for the right reasons...


:hi:

[sonias]

7. Lon is a great guy and he probably would do it too

The only issue I see with that is that Lon is viewed as so liberal (he's really progressive) that it's hard for him to get a bill passed. Some crazies will vote against any bill Lon proposes just because it's Lon's bill.

:loveya: Lon!

Sonia

[sonias]

8. I guess this is Part 3 of the story at TX Tribune

Texas Tribune 12/2/09
Debtors' Treadmill: Treasure Map

Companies that offer short-term, high-interest loans go where the business is: primarily low- and middle-income neighborhoods.

So-called credit service organizations, a group of lenders largely composed of payday and auto-title loan companies, are clustered in Texas neighborhoods that are home to families with incomes of less than $50,000 a year. We compared the addresses of lenders statewide, obtained from the Secretary of State, to U.S. Census data on median household income.

"They’re preying on folks that live paycheck to paycheck but also taking advantage of people that don’t have savings," said Don Baylor, senior policy analyst at the Center for Public Policy Priorities, an Austin-based organization that advocates for low- and middle-income Texans.

(snip)
Since 2005 in Texas, short-term lenders offering consumers quick loans with huge costs have gone mostly unregulated by the state. They pay $100 a year to register as credit service organizations with the Secretary of State, and can thereby charge customers enormous “fees” to use third-party lenders while avoiding Texas usury laws.

The lenders make millions from charges that rack up as consumers who are unable to pay off the debts continually renew their loans and incur more fees.

Seems like there is enough evidence in this research to support good legislation. I bet Senator Shapleigh who sent this link out in his newsletter would have filed it himself. Hope the person who wins that seat will consider filing it.

Sonia

[cfsteak]

9. This political season

I know this political season I'm going to grab some lapels on this issue