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Bank On Dallas Trying To Reduce Dependence On Texas Pay Day Loans

Wednesday, December 22, 2010 - 12:08 AM
Personal loan companies are facing a new competitor in TX. A city-supported system is intending to undercut their customer base. Called Bank On Dallas, the system is trying to open traditional banking to new customers. Payday lending stores might be facing new restrictions also. These undefined restrictions are being discussed by the Dallas city council. Resource for this article - <a title="Unbanked customers targeted with Bank On Dallas " href="http://personalmoneystore.com/moneyblog/2010/12/17/bank-on-dallas-texas-payday-loans/">Bank On Dallas trying to reduce need for Texas payday loans by MoneyBlogNewz</a>.



<p><strong>Info on the Bank on Dallas initiative</strong></p>



Bank On Dallas is a bank and credit union program depending within the Dallas area of Texas. ”Starter” bank accounts should be given to any residents who don’t have accounts at all at banks and credit unions, as outlined by the program. Many in this group of people are often at check-cashing storefronts and are within the “unbanked” group. The "Bank On Dallas" initiative is supported by numerous groups that are also trying to pass new regulations on the payday loan industry in the Dallas and Irving, Texas, area.



<p><strong>Debating limits in Texas on paydayloans</strong></p>



Lawmakers are getting a lot of community groups lobbying them. This is because they want payday cash loan store regulations made. It is more common in Dallas to view a car title or payday advance loan store than a McDonald’s or Whataburger. Currently in Dallas, payday lending is limited to "credit service organizations.". Limiting interest rates and terms of credit service organizations is what Dallas lawmakers want currently. This is because they take advantage of customers supposedly.



<p><strong>Underbanked versus unbanked</strong></p>



Organizations in Dallas explain that it could be great to open up banking to the unbanked. This is because payday lenders could have less customers coming in. The problem is, however, that unbanked customers and underbanked customers are two different groups. Most unbanked customers go to choice banking locations. This includes check cashing locations. Payday lending and other short-term cash possibilities are typically used by the underbanked though as a bank account is required for most payday lenders. The City Council in Dallas is still considering regulation changes although regulations for <a title="Get paid before payday with a payday cash loan" href="http://personalmoneystore.com/payday-loans/">payday loan</a> lenders in Dallas have yet to be changed.



<p><strong>Details from</strong></p>



<p>Dallas City Hall</p>

<p>dallascityhall.com/BankOnDallas/aboutUs.html</p>



<p>Personal Money Store</p>

<p>personalmoneystore.com/payday-lending-statistics/</p>



 
1
jaypeeCjaypeeC1 posts since
Dec 21, 2010
Rep Points: 1
1. Wednesday, December 22, 2010 - 5:40 AM
It's a commendable effort but unfortunately only 81 accounts have been opened since the program started in June of 2010.  Costs to date are $10,000 in cash and several thousands more in in-kind contributions: 

http://fwix.com/dallas/share/2c178de40f/council_committee_to_be_briefed_on_bank_on_dallas_program
4
pearlbrownpearlbrown1,485 posts since
Nov 2, 2010
Rep Points: 6,449
Reply