New Nonprofit Fund Offers Alternatives To 'Predatory Loan' Industry In Texas

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Payday and car title lenders boomed after the 2008 recession. The nonprofit Capital Good Fund, now operating in six states, wants to provide a less predatory alternative for people who need small, short-term loans. keranews

in Rhode Island right before the last recession, and he says he's seen first hand how the much-vaunted economic recovery after 2008 left a lot of people behind.

that offers small personal loans with reasonable terms. The fund makes loans and offers financial counseling in six states now. Texas is the latest. “A lot of people are buying iPads and the like because their kids are going to school on Zoom now,” he said.Without an alternative like these low-cost loans, Posner said most of his customers would end up taking out a payday or auto title loan and borrowing at rates and on terms that are considered predatory.

Payday loans are also often structured in a way that makes them difficult to pay off, forcing many borrowers to take out another payday loan to pay off the first one and setting off a debt spiral that critics say is fundamental to the profitability of these businesses. “To have a viable alternative that has an interest rate that is fair and reasonable, that people can pay it back, is an incredible opportunity for our community,” said Hoff.Because too many workers earn too little to make ends meet, Hoff said predatory lending fills a need. Her organization’s research found that only a quarter of 24- to 35-year-old workers in the Dallas area earns a living wage.

Because payday and auto title lenders usually only report missed payments to credit bureaus, “you can’t win but you can lose.”

 

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keranews Maybe it’s just me, but if the cost of living wasn’t so astronomical ( housing, health care, higher education), and our citizens made a decent wage that kept up with the ever increasing cost of, well, practically everything, these establishments wouldn’t be necessary.

keranews Predators, saving people from other predators by preying on them first. That’s some 3d chess right there

keranews One of the last stalwarts of journalism, with factual & moderate (argubly a slight tilt left) content has fallen. The Mongolians draw near.

keranews Sure.

keranews The state could easily do this overnight. Zero interest loans for those who need them. They have the power of issuing credit. The fact that they don't and that they actually allow in some states for this type of usury to take place is a disgrace.

keranews Republicans will shutdown this really quick if McConnell still in charge next year

keranews anti-Marxismlist! On my opinion, the human society is running on these: 1 Technology define theoretical economic aggregate 2 Work define gross economy 3 Finance system define distribution of wealth from gross economy

keranews

keranews These businesses are legalized loan sharks. Just another way the corporate oligarchy preys on the poor.

keranews We Chinese all know the Covid-19 virus was intentional accidentally leaked on Sept 18, 2019 when the CCP did a drill to plant and detect the virus at the Wuhan Tianhe airport. The virus was made in a PLA lab. The truth about the pandemic the MSM and leftists keep hiding from you.

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