Payday advance consumers in TX are being offered a new option for banking. This is an option supported by the city. The system is called Bank On Dallas. It attempts to get conventional banks to open up accounts with non-traditional customers. Payday lending stores might be facing new restrictions also. These undefined regulations are being reviewed by the Dallas city council. Source of article – Bank On Dallas trying to reduce need for Texas payday loans by MoneyBlogNewz.
What the Bank on Dallas initiative is all about
In Dallas, Texas, the Bank on Dallas program would be a bank and credit union. The program encourages banks and credit unions to offer "starter" bank accounts. Everyone in the area without a account with the bank would get one. This group of people, called “unbanked,” is a group that often uses check-cashing storefronts. The “Bank On Dallas” initiative is supported by many groups that are also trying to pass new regulations on the payday cash advance loan industry within the Dallas and Irving, Texas, area.
Fighting over limits on payday loans in Texas
Lawmakers are getting a lot of community groups lobbying them. This is because they want pay day loan store regulations made. It is more common in Dallas to determine a car title or paydayloan store than a McDonald's or Whataburger. Payday lending is limited to "credit service organizations" in Dallas right now. Limiting interest rates and terms of credit service organizations is what Dallas lawmakers want presently. This is because they take advantage of customers supposedly.
Differentiating between underbanked and unbanked
Organizations in Dallas explain that it can be great to open up banking to the unbanked. This is because payday lenders will have less customers coming in. You will find different people in the unbanked than there are in the underbanked. That is the problem. Most unbanked customers go to alternative banking locations. This includes check cashing locations. Payday lending and other short-term cash choices are typically used by the underbanked though as a account with your bank is required for some payday lenders. There hasn't been a change in regulations for payday lenders in Dallas yet. The regulations are being considered by the City Council though.
Information from
Dallas City Hall
dallascityhall.com/BankOnDallas/aboutUs.html
Personal Money Store
personalmoneystore.com/payday-lending-statistics/
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