Outsourcing Gone Wild: Texas Corrals Pay Day Lender to Help with Toll Collection
While many states- 15 and the District of Columbia- have banned pay day loan operations, Texas is handing over state business to them.
Basically PDL companies charge interest rates that would shame Tony Soprano to people who are economically vulnerable. The demographic preyed up by such lenders often have limited means and are unable to access or aware of alternative sources of money.
So Texas is using Ace Cash Express to collect tolls for a new highway opening up next week.
People can use the mail, Internet or phone to set up an account for paying the tolls on the new highway but the only way to do it in person will be at Ace store locations.
And folks will be charged $3 for setting up an account and $2 every time it is replenished with cash.
Multiply that by the potential customers in the Lone Star state and it could be quite a pay day for a pay day loan company.
This further helps Ace by bringing a fresh stream of people through the door who could be suckered into the usury rates that such companies charge.
It would be safe to say that the demographic such lenders target are economically challenged who are further hurt by the high rates coupled with easy access to ready money.
Jamie Dimon, Chairman/CEO of J P Morgan Chase, does not need to use Ace for needed cash. There is always the Federal Reserve that offers much better terms.
Governor Rick Perry has opened up his state to pay day lenders although he hesitates to count them out loud. In fact, the person he appointed to be the Chairman of the Finance Commission- which oversees consumer protection- is vice president of a pay day loan company.
Probably just a coincidence. The person in question, William White, says that folks who use PDL services have to take responsibility for their choices.
Like being born of color or without a trust fund.
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