Burnt Orange Report

What a cheap trick to get us to pull up his website. Have you no shame?

If I had shame, would I be involved with politics?

Good point.

Kudos to Bell for talking about this issue. This is an important one, and I hope he brings awareness to the topic and gets some change started.

There are other things that need to be considered for this sort of reform. Realizing that huge numbers of Texans might actually DEPEND on these pay day loans in order to have cash for paying bills, etc, the bankruptcy numbers are expected to go through the roof if this service was eliminated. And, much like prohibition, it could strengthen black market lending as well.

Clearly there is some problem with what the interest amounts to on these short term loans (although the actual fee is not numerically that high by itself most of the time, it is huge in terms of percentage), and so the best solution brings these places under greater regulation, perhaps limiting the amount they can charge for the service. But you'll need a solution for other problems if this is going to be illegal all together.

The point isn't to make these loans illegal. That is never advocated in the piece. It's also understandable that people would charge higher rates for these loans as they carry higher risk. However, when companies try to wiggle their way out of abiding by regulations that still allow them to charge high rates that crosses a serious line.

As for the abuse of the usury laws I would point out that we live in an age where the question of ethics no longer matters. Only legality. And what they are doing, as the report points out, is perfectly legal. Which points out a very interesting question with regard to Tom De Lay no one really wants to ask. Did he act really act illegally? Or merely unethically? There is a big difference. It's a question I suspect a jury is going to have a hard time with.

The reality of payday lenders is they prey on the poor. But you know what? So do a lot of people in our society. Particularly politicians. When it's time to cut budgets, usually the poor are the ones who get cut. Rather than the rich. They get richer. And the poor get poorer.

And this in a "Christian" country that is anything but. We even have "Christian" attorneys now. I suppose they pray for your soul as they take everything else from you.

"Yes, we can win this case. But we will need another retainer in order to do it." Talk to any woman who's been through a divorce. What little you get goes to pay the attorney. Is that any different than the payday lenders?

Most people in this country no longer have any real rights under the law. They can't afford them. The few rights the Republicans haven't taken away from them I should add.

Try suing a realtor or a home builder by the way. You can't. The contracts you sign all require mediation but it is more a matter of indemnification than mediation. Your roof collapses because of poor construction and suddenly it becomes a "dispute" rather than a lawsuit. What are you disputing? Whether the builder is a sleazeball or just cheap? Either way, your roof collapsed and he doesn't want to replace it. Merely "repair" it.

The attorneys of course still get paid. To tell you that you can't sue. And to tell you that you should take the settlement. And then they neglect to tell you that you may have a problem actually collecting it. Sometimes you have to sue to collect. You should have been allowed to sue to begin with.

The corruption in this country is a moral corruption. And behind all corruption is an attorney. Who has managed to find a way to make something illegal suddenly legal.

How many times did Tom De Lay joke he doesn't get out of bed in the morning before talking to an attorney? Probably the only truthful statement he's ever made. Point is at the end of the day it may turn out that everything he did was in fact legal. And that is all that counts.

And it's the same thing with payday lenders. It's legal. That is the new American way. Screw whoever you can however you can and don't think twice about it as long as an attorney has told you it's legal.

The payday lenders by the way will be doing exremely well when the light and gas bills go up and people have to borrow between paychecks to keep the electricity and gas on. I have to wonder if the pay day lenders have lobbyists in Austin? Everyone else does except for us.

I'm not going to say that they have lobbyists in the form of a state rep... but...
http://64.233.161.104/search?q=cache:RsTRDpn0MjgJ:publicintegrity.org/docs/publici/pi_2002_05.pdf+%22gary+elkins%22+loan+shark&hl=en

Gary Elkins is a loan shark. He'll probably sue BOR for saying that.

"It's also understandable that people would charge higher rates for these loans as they carry higher risk."

Oh, my. You must be a latent Republican. That is the argument used for deregulation and the "high risk" energy providers it created. Can't pay your bill because your utility provider has ripped you and everyone else off? You are suddenly high risk then. And your utility provider can cut off your electricity, even if you're on a respirator, and you will have to obtain electricity through a high risk provider. But first you will have to pay a big deposit and then you will pay higher rates. Because you're high risk. And go stay with someone while you are "switched" because it can take up to two weeks. While they determine how high a deposit they can legally charge you. High risk is just poor.

How many people realize they can cut off someone on a respirator? The reality of deregulation. It didn't result in lower utility bills. It resulted in the removal of the protections the public had through public utility commissions. Quite a few people in Texas laughed at the people in California. And blamed them and their environmental policies that blocked construction of nuclear plants. The joke is on us now. We should blame ourselves. For allowing any politician who voted for deregulation to remain in office. If we had a public utility commission that served the public, we wouldn't have the high utility bills we do and many people wouldn't need the pay day lenders. What is it with even the Democrats in Austin? We are all being bankrupted by high utility bills and high taxes. The Democrats may not have voted for deregulation. But they have voted for and continue to vote for higher taxes. I think Hochberg is a joke along with everyone else. He proposed raising taxes. Bottom line.

The real bottom line is we cannot afford any more taxes. Especially when faced with higher utility bills. Most of us got hit over the summer with our bills doubling over what they were a year before. And like the price of gas at the pump, they aren't going to go down.

And there isn't that much risk for the payday lenders. They require a checking account. And they hold a check. And I've been told several have started filing bad check charges when the check bounces.

But what he is doing is legal. That's my point. It's legal. And shouldn't be.

It also illustrates how little we really know about our elected officials. How many people in his district know he owns this company and realize the profit he makes off of people in desperation? That's the sad part. These people are making money off of other people's misery.

Legal or not, it's pretty sleazy if you ask me.

Most people take out pay day loans as an emergency last resort. Its easy money, but pay back is the price. Of course, credit cards are just as bad on interest. But I dont see anyone attacking credit card companies who throw easy money at us that then lead to bankruptcy. Oh wait, it wont lead to bankruptcy anymore since nobody will be able to file.

Oh and did you know if you try and type "pay day" as one word with no space, this comment form considers it objectionable content, lol!!

That's pretty funny.

John, Your statement is misleading. Credit card cash advances for emergency situations do carry high rates and, if not paid back, can be difficult to contend with. However, rates on direct cash advances are significantly higher and less regulatd than their credit card counterparts.

The Feds are about to end payday lending and that's why Cash America tried to muscle this legislation through this past session. Georgia has already banned the industry. Wall Street was watching Texas to see if all those loan shark facilities were going to make a move to Texas. The people who operate these places have no shame. They set up shop near military bases and in low income neighborhoods and prey on desperation. They can charge up to 800% interest on those loans! It's just another way to get rich off of poor people.

i'm just glad a D is addressing this important issue. blacks, hispanics and poor people are often victimized with loan rates that compound into 300% or more. it is another form of indentured serviture.

for instance, it is illegal for an auto dealer in texas to set you up on a payment plan that keeps you from ever paying off the loan. yet these wolves can victimize minorities to the point of bankruptcy because they needed $300 to pay an emergency expense and can't keep up with the ridiculous interest.

I seem to recall some legislation being passed during Regular regarding predatory lending protections for those in the armed service.

Yep, SB 1479 by Shapleigh.

Just staff,

It was. That's a great bill that protects soldier's from having their wages garnished and from having them harassed via their base commander. However, these groups are still very much targeted (especially by groups not falling under the category of cash advance).

The State has a duty to protect stupid people from themselves. Cattle lack the capacity to be free.