Bank On Dallas attempting to lower need for TX payday loans

In Dallas, Arlington and Irving, Texas, a brand new program is trying to undercut payday lenders. This program attempts to encourage banks and credit unions to open accounts with people they typically wouldn’t. It’s known as Bank On Dallas. Payday lending stores might be facing new restrictions as well. These undefined restrictions are being discussed by the Dallas city council. Source of article – Bank On Dallas trying to reduce need for Texas payday loans by MoneyBlogNewz.

What you should know on the Bank on Dallas initiative

A bank or credit union would be what the Bank On Dallas would be. In Dallas, Texas, it would be located. The program encourages banks and credit unions to offer "starter" bank accounts. Any person in the area without a banking account would get one. This group is called the "unbanked" people. Generally, they can be found at check-cashing storefronts getting cash. There are numerous supporters of the "Bank on Dallas" program. These supporters also are working in Dallas and Irving, Texas to try and get new regulations on the payday loan industry passed.

Payday cash loan limits in Texas argued over

Lawmakers are getting a lot of community groups lobbying them. This is because they want payday cash advance loan store regulations made. Dallas officials point out that car title and pay day loan stores are more common in Dallas than Whataburger and McDonald’s stores. 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 currently. This is because they take advantage of customers supposedly.

Underbanked and unbanked differences

The customers available to payday lenders will be reduced by banking being open to unbanked customers which is what Dallas organizations state. The only problem is that unbanked and underbanked people are different. Choice banking like check cashing locations are what unbanked customers use. Most payday lenders require there to be a account with your bank for any customers. This means mostly underbanked customers are going to payday lending for short-term cash. The City Council in Dallas is still considering regulation changes although regulations for paydayloans lenders in Dallas have yet to be changed.

Details from

Dallas City Hall

dallascityhall.com/BankOnDallas/aboutUs.html

Personal Money Store

personalmoneystore.com/payday-lending-statistics/