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NPT Capitol: Shapleigh accused of “inflammatory, shameless” rhetoric

The Consumer Service Alliance of Texas, CSAT which represents many small loan businesses across the state, accused Senators Eliot Shapleigh and Wendy Davis of, “using inflammatory, shameless and blatantly incorrect rhetoric to try to sway public opinion about short-term loan services in Texas.”

Shapleigh and Davis held a press conference on Monday about combating what they call “payday” or “predatory” lenders, including CSOs, many of which belong to CSAT.

Read what Shapleigh and Davis said Monday here. Read the full press release frm CSAT after the jump.

–Ben Wright

AUSTIN, Texas (March 23, 2009) – Alex Vaughn, president of the Consumer Service Alliance of Texas (CSAT), today issued the following statement in response to legislation filed by state Sens. Eliot Shapleigh and Wendy Davis to drive short-term lenders in Texas out of business:

“It’s unfortunate in these tough economic times that Sens. Eliot Shapleigh and Wendy Davis are using inflammatory, shameless and blatantly incorrect rhetoric to try to sway public opinion about short-term loan services in Texas.

“The fact is small, short-term loan companies are regulated. They are subject to the Texas Finance Code, the Texas Constitution and no fewer than seven other laws and regulations. They are subject to the Texas Deceptive Trade Practices Act that imposes treble damages for wrongdoing.

“Dissatisfied customers can complain to the Texas Attorney General. Despite hundreds of thousands of transactions a year, the AG has received less than 50 complaints in each of the past four years.

“The interest rate on small, short-term loans is capped at 10 percent per annum by the Texas Constitution. Fees for services are not limited – just like fees for banks, credit unions and other lenders are not limited.
Small, short-term loan fees are virtually always less than bank NSF charges and utility late and reconnection fees.

“Ninety-four percent of small, short-term loan borrowers repay their loans.

“Documented research shows when the state of Georgia banned small, short-term loans, personal bankruptcies sky-rocketed, and the amount of bounced check fees paid to banks and credit unions exploded. We’ve seen similar results in Oregon and North Carolina where small, short-term loans
were banned.

“When Congress imposed a 36 percent APR cap on loans to military families, many turned to their local credit unions who found they could not cover the costs of doing business lending under that rate cap.

“Meanwhile, an FDIC pilot project to encourage banks to make small, short-term loans is winding down. None of the 30 some odd banks that participated nationwide plan to continue offering small, short-term loans.

“We encourage our customers to budget. We teach them how to have so they will not have to borrow for every financial emergency. But, we also believe consumers should have a variety of choices when deciding how to meet individual and family needs.”

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Written by newspapertreeelpaso

March 25, 2009 at 9:31 am

Posted in Uncategorized

13 Responses

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  1. What’s shameless is predatory and subprime lenders. They’ll do anything to stay alive. Even when they played a role in the collapse of our financial system.

    By the way, saying Texas has a 10% cap and then complaining about a 36% cap on predatory loans strains your credibility. Dante has a place for you in the Inferno, CSAT. We don’t need you. We don’t want you.

    eam

    March 25, 2009 at 10:28 am

  2. Alex, is it 10 percent or 36 percent? And who in their right mind complains about a freaking 36 percent cap?!?

    Corner Desk

    March 25, 2009 at 11:09 am

  3. Anybody surprised at that blowhard Shapleigh tooting his own horn again? No one respects him in Austin and he is a worthless Senator, wasting our vote in Austin

    Richard

    March 25, 2009 at 11:15 am

  4. There was a time in my life when I couldn’t make ends meet, and I was drowning under enormous bank fees…every time I’d deposit my check they’d take more of it immediately for their fees, causing more payments to bounce. It was insane!! I finally decided to try a payday loan place, and the people working there didn’t make me feel ashamed of my situation, and the fees they charged were MUCH less than what the banks were charging, and I was able to recover. Thank God I haven’t been in that situation for many years, but the feelings remain. Bank fees pile up, the bank automatically takes money out of the account, more checks bounce, more fees…it’s a horrible cycle meant to keep low-income people in an unrecoverable hole. THAT’s what the government needs to work on. Either fix the whole system or leave it alone.

    elz

    March 25, 2009 at 11:25 am

  5. Dear Richard (and others who are wondering if they should like or dislike Sen. Shapleigh):

    Circa 1996, I was a member of a committee which, among other things, conducted interviews with all
    prospective political candidates running for local and state level office. The committee, for each
    political position, carefully created a set of questions which were posed to each candidate. The committee invited candidate in over a three day period, and working about 3 hours a day, we had candidate visits in for 20 minute time slots.

    We then awarded small contributions (usually less than $1,000) to candidates we thought brought the most
    to El Paso.

    For that year, without equivication, Shapleigh was hands down the absolutely best prepared, smartest candidate for any office. He was literally the ONLY candidate who actually had a PLATFORM, if you can imagine that. Eliot was simply miles and miles ahead of the rest of the crop.

    I don’t know all that he has done right and all that he has done wrong over the last ten years, but I’m confident that there has been far more of the former than the latter. Eliot’s decency, his caring for El Paso, his education, and his intellect probably do serve to make him stand out, and at times becoming a target. In my view he is a gift to El Paso.

    Synthetic

    March 25, 2009 at 11:46 am

  6. Thank goodness for someone like Mr. Shapleigh. He fights for El Paso and Texans alike. Wish we had more senators like him. He takes a stand and doesn’t back down.

    Randall

    March 25, 2009 at 1:42 pm

  7. ask bank of america why they pulled their commercial loan department out of el paso. the law firm of shap and caballero. shap is just another acorn type lawyer and rep. this is why border towns like mcallen have done so much better than us in texas. they dont fight everything perry. shap does.

    cabron

    March 25, 2009 at 2:42 pm

  8. Some clarity on Acorn.

    As far as I know, Acorn is a stand up organization which was, I recall, formed during the Reagan administration, spearheaded by a Republican Attorney General, with the intent to increase voter registration.

    I bring up the “Republican” nomenclature to both laud
    those formers of Acorn, and to bring out what became
    an amusing but wildly mindless smear of Acorn by the last Republican presidential candidate, John McCain.

    So, at least in my mind, Acorn’s work to register more voters is admirable work, and they are apparently very good at it. There were some errors
    pointed out during the last election, but these amounted to a fraction of a percent of the total effort. I recall Mrs. Palin making fun of an Acorn
    voter registration application having the name “Mickey Mouse”.

    Palin ignorantly called this “Voter fraud”. Setting the record straight, Acorn’s charter disallows it the right to screen applications for odd names, but rather screens only for completeness, then forwards to the state’s voter registrars for disposition. Does anyone want a non-governmental body doing the screening?

    Acorn is a good thing. Imperfect, but good.

    Synthetic

    March 25, 2009 at 3:32 pm

  9. ask eliot’s wife what she thinks of him right now.

    cabron

    March 25, 2009 at 3:42 pm

  10. Richard, since most Texans have lost respect for “Austin,” I wouldn’t worry about their view of our politicians. Fact is, those who know Senator Shapleigh and understand what he stands for respect him very, very much.

    This country is changing; and slowly, so is Texas. We’ve had it with bad leadership. Texas needs more thinking and caring leaders like Eliot Shapleigh (If we’re even allowed to describe our leaders like that in Texas).

    eam

    March 25, 2009 at 3:44 pm

  11. […] leave a comment » State Senator Eliot Shapleigh responded to a Consumer Service Alliance of Texas press release earlier this week which accused him of using, “inflammatory, shameless and blatantly incorrect rhetoric to try to sway public opinion about short-term loan services in Texas.” [link] […]

  12. cabron, typical, you get set straight by synthetic and you can’t make a point so throw out the “ex-wife.”

    If we would have had someone like him in politics thirty-forty years ago, maybe, other cities wouldn’t have passed El Paso….. have you even talked to him about issues? He has grasp of the underlying components and is prepared. Can’t fault him for taking a stand for El Paso and what he believes.

    Randall

    March 26, 2009 at 10:22 am

  13. The style of writing is quite familiar to me. Did you write guest posts for other bloggers?

    How to Get Six Pack Fast

    April 15, 2009 at 8:29 am


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