Home wireless networking Ted Cruz defends payday loans during San Antonio shutdown

Ted Cruz defends payday loans during San Antonio shutdown


Pressed by members of the San Antonio black community to help fight payday lenders who abuse their community with high interest loans, US Senator Ted Cruz instead warned them against taking an overly aggressive stance against these companies.

Cruz acknowledged that for some people, payday loan debt can quickly spiral out of control. But when asked to support legislation to cap payday loan interest rates, Cruz said he was reluctant to take steps that might force some lenders to stop offering such loans to payday loans. people who need it.

“You don’t want to take away credit options for people in difficult circumstances where they then have to go to a loan shark,” Cruz said in a meeting with a dozen people at the Good Samaritan Veterans Outreach & Transition Center on Connelly Street. .

Cruz said that when the government stepped in to regulate subprime mortgages, it suddenly became difficult for people to get home loans. Capping interest rates for payday lenders could have the same effect in this market, he said.

Cruz never categorically rejected the interest rate support ceilings, but reiterated his concern to go too far.

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After the meeting, Cruz said the way to fight high interest payday loans is to make sure people have better paying jobs and can improve their economic situation.

“If you ban payday loans, it’s not like the people who get payday loans now will suddenly no longer need the money for rent,” said Cruz. “If they don’t have payday loans, they’re going to find even worse options.”

Cruz also used the meeting to tout federal tax reduction legislation which he said includes a provision to encourage businesses to invest in economically disadvantaged areas. He says these policies can create more jobs in low-income areas, giving people a real path to improving their economic situation.

During the meeting, Cruz blamed the Democratic leaders of large cities for worsening poverty in black communities.

“I think the politics of the Democratic Party have done a lot of damage to the African American community,” said Cruz.

On HoustonChronicle.com: If payday loans disappear, what replaces them?

Several people present at the meeting said that they were just happy to see Cruz spending time in a community that often does not attract much attention.

“It was great that he invited us to the table to talk,” said Karina Villa, who runs a nonprofit on the East Side.

Just about 24 hours after Cruz held his roundtable in San Antonio, his Democratic rival Beto O’Rourke was scheduled to hold his own rally at the Carver Community Center on Tuesday night, about a mile from Cruz on Monday.

Cruz and O’Rourke are locked in a race which, according to some polls, is tightening. Cruz acknowledged that a Republican would generally not be in great danger of losing a US Senate race in Texas, but said this year was not an ordinary election cycle. He notes that O’Rourke has record fundraising numbers and takes the challenge seriously.

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