There has been a lot of discussion in the news and blogs about payday loans.
This video was sent to me by a friend. It's the best explanation of payday loans that I've seen.
One problem is that if you don't pay the entire extra interest and principal by the end of the week the ENTIRE BALANCE gets 30% (or whatever applicable interest rate) added to it; it's legal loansharking. Those types of loans, at those rates, should not be available. My friend and hiker extraordinaire Bill Holston noted this article from the Texas Observer, which talks about payday lending bills being stalled at the State level by Rep. Vicki Truitt.
I'm not a fan of check cashing places. To me, charging 8-10% to cash a check is outrageous when most banks will cash a check drawn on said bank for free with proper I.D. The city does have a program called Bank on Dallas where the so-called "unbanked" and "underbanked" can get a fresh start and get an account. But most don't know about it, including some Mayoral candidates.
These parasites prey on the uneducated and uninformed. People say, "well I had a bill due and it had to be paid." Most people in dire straights with respect to bills don't even realize that you can call the company you owe and make an arrangement.
To me, this is just one of the "lowest common denominator" businesses plaguing many neighborhoods in Dallas.
2 comments:
Amen! What blood suckers.
as always, your input is invaluable to our community.
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