payday lending

Pixabay (Public Domain)

From Texas StandardOfficials say about 10,000 Texans paid up to $50 million in debts they didn’t owe.

The Federal Trade Commission says one Kansas man, Joel Tucker, got his hands on some very valuable data like social security numbers and banking information. But FTC attorney Michael Tankersley says they don’t know how Tucker allegedly got this info. Tucker himself has not commented on the charges.

Scurzuzu/Flickr (CC BY-NC 2.0)

From Texas Standard:

Texas leads the nation in payday lending and car title loan businesses with more than 3,000 storefronts across the state. Payday lenders are both a blessing and a curse: on one hand, they meet a need; on the other, they do so through sky-high interest rates.

That's why communities of faith are getting involved in the effort to better regulate them. But should faith leaders get involved in money matters?

 


Scurzuzu/flickr (CC BY-NC 2.0)

From Texas Standard:

The Catholic Church, no stranger to controversy on a constellation of topics, has become rather pointed on one political matter – payday lending.  The Diocese of Fort Worth has now asked the city to strictly regulate the industry in the only major city in the state without any such regulations.

Bishop Michael Olson, head of the Diocese of Fort Worth, issued the call to action. He says that the Catholic charities in the city saw a pattern with the people they were assisting: many of them had fallen into a cycle of debt.

 


James Malone, Texas Tribune

Signs offering promises of “quick cash” can be seen all over Texas. So-called payday lenders offer short-term loans under $700, but those loans have been criticized for interest rates that can climb to 500 percent.

For some customers, taking one on leaves them in a never-ending cycle of debt. It’s controversial, and the practice is actually banned in 12 states.

Recently, it’s become an issue in this year’s governor’s race.

The topic was kicked up after the chairman of the Texas Finance Commission – William White – made comments to the El Paso Times suggesting payday lenders should be able to charge whatever fees they want. Previously unheard of, White’s comments put him in the spotlight among payday loan regulation advocates.

Bobby Blanchard for KUT News

Supporters say a new bill in the Texas Legislature would help protect consumers and regulate a quiet but burgeoning industry.

House Bill 1595 from Rep. Doug Miller (R-New Braunfels) would regulate the growing industry of lawsuit lending. Lawsuit lending companies provide loans to plaintiffs who need money while waiting on a settlement. But many of these loans come with high interest rates, some as high as 150 percent.

Pages