Dallas Churchgoers Protest Payday Loans

By Andrea Lucia, CBS 11 News

DALLAS (CBSDFW.COM) – Waving signs and chanting in unison, dozens of churchgoers walked the streets of south Dallas Saturday morning, protesting the loan businesses in their area.

“A loan shark by any other name is still a loan shark,” said pastor Frederick Haynes of the Friendship-West Baptist Church.

Within two years, Haynes claims 17 new payday and title loan companies have opened near his church, preying on its members during desperate times.

A single mother, who asked to remain anonymous, told us she took out a payday loan, after losing her job.

“Worst thing I could have ever done,” she said.

That $400 loan, she says, quickly spiraled out of control, adding more than 30 percent in interest every two weeks.

“I was frantic,” she said.

By the time she finally paid it off two and half years later, with the help of friends, she estimates the $400 loan cost her $4,000.

“I feel like for two years they did ruin my life,” she said.

Former customers complain that long and complicated contracts are never fully explained.

“They’re written in such small print. A lot of the time you don’t really realize what you’re signing up for,” said Charles Beasley, who says he lost his car after he was unable to pay off a loan.

In a statement, the Consumer Services Alliance of Texas, which represents these loan companies, claimed it was “surprised and disappointed” to hear of Saturday’s protest.

“The fact is that small, short term loans are often the lowest-priced option for many of our customers when compared to bounced check charges, credit card late fees, and utility reconnect fees,” read the statement.

  • mike

    She needed 400 bucks badly buy I noticed she has her hair and nails done.Sometimes people just spend there money fast then a bill comes in the mail oh no would should I do….

  • Deitra

    The video was not taken when she was victimized by the payday loan. She was eventually triumphed thanks to some help. She doesn’t look like what she been through. Good for her!

  • Chrisarah

    First there are some responsible loan businesses. The one I worked at… one of the requirements for even GETTING the loan you must be currently employed. You cannot expect someone to pay a loan back with NO JOB (no income coming in) 2nd point…. those loans are meant to be paid back (in full) as soon as your next payday comes up. No one forces you to drive to a business, give them your personal information and take money from them. So if you want a loan, know what you are getting into. Otherwise if the church helped her pay it off… maybe she should of asked them for money instead of going to the payday loan office.

  • Charles Beasley

    I was the person in this news story. I do believe people should be wise with their handling of money. But preying on people when thier at their desperate is just bad business. Im glad Iboc, Friendshipwest, Antioch, and Concord had the fortitude to stand up, and be an advocate for some of these hurting people. My payday loan experience was one of the worst business decissions Ive ever made. And I will never do business with them again!

  • Nic

    Please stop trying to help me, If you don’t want to pay that much for a loan, don’t take the loan. For some, like me, it helped me when I needed a little cash. I don’t need the church or government making my choices for me. Thank you very much.

  • runner

    i think they should pull all of these type of businesses out of the area , and just see what happens then

  • danish

    Payday Loan Companies

    loan for people or loan for bussiness


  • http://paydayloanscashadvancesdallas.com/latest-payday-loan-dallas-news-dallas-morning-news-editorial-it-is-time-to-close-the-payday.html Payday Loans Cash Advances Dallas Texas

    […] Dallas Churchgoers Protest Payday LoansCBS Dallas / Fort Worth […]

blog comments powered by Disqus
The Taz Show

Listen Live