Rev. Darrell Lewis from The Metropolitan Organization (TMO) and Rev. Olin Knudsen from Dallas Area Interfaith (DAI) testified before the House Pensions, Investments & Financial Services Committee to oppose House Bill 3292. Both pastors argued that payday loans are immoral and spoke of how predatory loans trap families in their congregations in vicious cycles of debt.
Rev. Olin Knudsen, a retired Major in the United States Air Force shared that when he served in the military in Korea, no payday loan centers were permitted outside the base. In the United States, however, they are everywhere. He asked, "Why do we need more forms of predatory loans that prey on families? If it looks like a duck and sounds like a duck, then it is a duck!"
HB 3292 is a dangerous predatory lending bill which would open the door to new, unregulated high-cost cash advances. Specifically, HB3292 would exploit a loophole to provide a way for someone to “sell” a TV or a car and “lease it back“ by keeping the item and making payments every two weeks. The “seller” leaves a check for the price of the TV, say, which the company cashes can cash when “seller” gets behind in lease payments. Because you “sell” an item and “lease it back” it does not count as an actual loan. It operates like a payday loan, but would circumvent current payday and auto title lending ordinances.
The Network of Texas IAF Organizations is calling on House members to oppose this bill and/or take their names off if they have already signed on.
House Bill 3292 Fact Sheet, Texas Fair Lending Alliance
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