Installment loans are not the reason for poverty

The cure for poverty is employment. Having a job empowers consumers to provide. If it were left up to the Anti-Poverty Coalition of Greater Dallas, some jobs should actually be forfeit in their crusade. The coalition told the Dallas Observer that payday lending jobs must be sacrificed, supposedly in the name of fighting poverty. Source of article – Killing payday lending does not fight poverty by MoneyBlogNewz.

Getting poverty taken care of

Dallas-based non-profit CitySquare’s CEO, Larry James, said that there is a desire to get out of poverty for the coalition:

“The Anti-Poverty Coalition of Greater Dallas is a new coalition that seeks to move 250,000 people out of poverty permanently by 2020 by coordinating efforts to keep people from falling into poverty and increasing pathways out of poverty,” writes James.

'A treadmill of debt’ is there

There’s a reason why the unsecured loan and quick installment loan industry is being attacked. James said that “a treadmill of debt” is created with them helping individuals into poverty. All zoning ordinances would be challenged with legislation like SB 253 and Texas HB 410 that would keep payday lenders out of the credit service organization category. The poor would be much better off with a “strong zoning ordinance to decrease the clustering of payday and auto title lending stores.” This is why the Poverty Coalition of Greater Dallas is attempting to get it put together. Those who are hurt by the so-called payday lending evils, rather than bad personal spending habits and Wall Street, would be much better off. In truth, eliminating payday lenders limits customer choice and costs Texas jobs, both dire consequences in l! ight of the recession-ravaged economy.

Attack should have been played better

Industry experts are worried that more would come if zoning ordinances requiring installment and personal unsecured loan outlets to be at least 1,000 feet apart with ordinances for instance SB 253 and HB 410 that there would turn out to be more. Direct attacks against payday loan lenders for instance demanding an untenable 36 percent Annual Percentage Rate cap have proven unpopular when it comes to battling poverty, as it would shut payday loan lenders down, which means people would lose their jobs.

The zoning attacks do not show everything. The “anti-poverty” coalitions must want something else. Communities without access have a higher poverty level in reality according to extant independent research. The Anti-Poverty Coalition of Greater Dallas and other charitable groups should take the time to review this research before putting all this effort into something that may actually hurt the end goal.

Citations

Dallas Observer

blogs.dallasobserver.com/unfairpark/2011/04/new_anti-poverty_coalition_to.php

Payday Pundit

paydaypundit.org/2011/04/12/flawed-plan/

Texas HB 410

capitol.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=HB410

Texas SB 253

capitol.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=SB253

Texas Secretary of State

sos.state.tx.us/statdoc/faqs2800.shtml

Jobs fight poverty

youtu.be/w0v7OMt3vio