Bank On Dallas attempting to lower need for TX payday loans

In Dallas, Arlington and Irving, TX, a brand new system is intending to undercut payday lenders. Termed Bank On Dallas, the system is attempting to open conventional consumer banking to new customers. Payday lending stores might be facing brand new restrictions as well. These undefined restrictions are being reviewed by the Dallas city council. Article resource – Bank On Dallas trying to reduce need for Texas payday loans by MoneyBlogNewz.

What the Bank on Dallas initiative is all about

A bank or credit union would be what the Bank On Dallas would be. In Dallas, Texas, it would be located. It tries to encourage banks and credit unions to give “starter” bank accounts to residents of the area who don’t have bank accounts. Numerous in this group of people are often at check-cashing storefronts and are within the "unbanked" group. 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 cash loan industry passed.

Paydayloan limits in Texas argued over

Lawmakers are getting a lot of community groups lobbying them. This is because they want paydayloan store regulations made. It was pointed out that McDonald's stores and Whataburger stores aren't nearly as common as car title and paydayloan stores. This is in Dallas. Dallas has strict rules on payday lending already. Only "credit service organizations" can do it. As Dallas lawmakers believe credit service organizations take advantage of customers, they want to limit the rate of interest and terms that could be used.

Why there is unbanked and underbanked

Organizations in Dallas explain that it can be great to open up banking to the unbanked. This is because payday lenders can have less customers coming in. The only problem is that unbanked and underbanked people are different. Unbanked customers often use check cashing locations and other alternative banking locations. Most payday lenders require there to be a account with the 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 payday loan 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/