Big Cash Targeting MCU Over Payday Loan Issue
Is Newt Gingrich just a shill for the gang who brought us the terrible home mortgage meltdown? Is Mitt Romney merely a "vulture capitalist," a job killer and corporate raider?Millions of dollars in GOP primary ads have done a good job demonizing these presidential candidates. Grand Old Party members who once hailed the Supreme Court's Citizens decision, which lets campaign cash flow unimpeded, are now asking: What hath Chief Justice Roberts and his high court boys wrought?
The Citizens ruling is expected to spur $5 billion in spurious political ads for TV in 2012, almost doubling the amount spent in 2008. It's bad enough witnessing Big Cash turn our national politics into a cynical spectacle, but Big Cash also is defiling grassroots politics in our own backyard.
Close to home, members of MCU (Metropolitan Congregations United) have met at the Second Presbyterian Church to address the payday loan scandal in Missouri. To end usurious loan rates on the poor, averaging 445 percent annually, 35 congregations have pledged to work to get a payday loan cap on November 2012's ballot.
For their efforts, Big Cash has enlisted a Texas law firm to try to intimidate religious people from doing the work to get payday loan reform on the 2012 state ballot. The firm has sent official letters to our area's priests, ministers and rabbis telling them that they face penalties and loss of IRS exemptions if they get involved in the political process.
The threats are bogus, because the laws limiting religion in politics are designed to be candidate-oriented, not issue-oriented. So, our local congregation members say they "will overcome and carry on." But even if they succeed in getting the reform measure on the state ballot, Big Cash will be there to campaign against it on behalf of the payday loan rackets.
state of texas payday loans legal - News
For their efforts, Big Cash has enlisted a Texas law firm to try to intimidate religious people from doing the work to get payday loan reform on the 2012 state ballot. The firm has sent official letters to our area's priests, ministers and rabbis
A Texas law firm representing payday loan companies has sent dozens of letters to church leaders all over Missouri to try to intimidate them. The churches are promoting a ballot initiative that would reduce the obscene amounts of interest those payday
The payday loan industry is looking a bit desperate in its attempt to derail an initiative petition in Missouri seeking to more strictly regulate short-term lending. This week, a law firm in Grapevine, Texas, of all places, sent a letter to some Kansas
An editorial at St. Louis Today noted that Missouri is “completely out of whack with national norms” on the issue, and that lenders in the state can charge, legally, as much as 1980 percent on small, short-term loans of up to $500.
The appointment of Richard Cordray as Director of the Consumer Financial Protection Bureau has caused concern among investors in the payday loan sector. My analysis of the legal and regulatory landscape, however, suggests that there is nothing for
Payday Loans in the State of Texas | anthropologica.net
Before 2005, payday loans in Texas were backed by banking institutions. An independent lender would issue a payday advance with backing from a local bank and split the profit from the cash loan with the bank. If payment fell through, the bank would cover the lender’s losses. This is how the payday lending industry operated in Texas until 2005, when the FDIC altered rules about payday lending.
Texas state legislation stepped in to allow independent lenders to continue their operations, only without the backing of banks. The new legislation in 2005 allowed lenders to charge and rate that was profitable for them. Under Texas law, these lenders are referred to as Credit Services Organizations and are stated to exist to help consumers with poor credit rebuild their credit score. These lenders are permitted to charge fees as they see necessary. The average payday loan in Texas costs $20 per $100.
Texas consumers can find payday loans online or in person. Because Texas does not impose a state interest rate cap, it’s a good idea to compare lenders to get a good rate on your cash loan. You can compare lenders side-by-side by visiting their websites and comparing their rates, or you can search for customer reviews and recommendations.
Don’t forget that a Texas payday loan is not your only option when you need emergency cash. Credit cards, a savings account, or even help from friends and family can provide the cash you need at a cheaper rate. Don’t think you can qualify for a bank loan? Some banks have altered their minimum credit requirements to help consumers affected by the recent economic troubles. Ask your local bank if you can qualify for one of their personal loans for bigger expenses.
Always remember to borrow money from any lender responsibly and don’t take out more than you need to keep your loan affordable.