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In regard to reforming payday lending, a Colorado law offers a good legislative example, and an innovative program adopted by a North Carolina credit union provides a good nongovernmental model, said Molly Francis, a recent Baylor University graduate in the Baylor Business Fellows program. Molly Francis initially learned about issues surrounding payday lending at her home congregation, Wilshire Baptist Church in Dallas.
In cooperation with its New Baptist Covenant partner congregation, Friendship-West Baptist Baylor Business Fellows Thesis in Dallas, Wilshire has worked with the Cooperative Baptist Fellowship to develop a model for congregational advocacy regarding payday and auto-title lending.
As part of the Baylor Business Fellows program in the Hankamer School of Business, Francis needed to complete a research thesis prior to graduation. As she researched the history of payday lending, Francis learned the industry evolved to adapt to legal regulations specific to each state.
A key development occurred when the U. Fifth Circuit Court of Appeals ruled payments to credit service organizations are not considered interest and therefore are not bound by usury laws.
Many consumers do not recognize a third party is involved, since they deal directly with the payday lenders operating as credit service organizations that charge brokerage fees, she noted. The principal maintains the risk of borrower default, and the broker has nothing to do with it.
It is simply read article formality that the third party provides the funds. In all other respects, the payday lender acts like a lender. In Texas, payday lenders concentrate their storefront operations in areas with a high proportion of minority residents and people who live in poverty, Francis observed. Typical payday lending customers are the working poor, whose low income and lack of credit history cut them off from mainstream banks but who need help covering expenses until their next paycheck, she noted.
Most often, borrowers roll over their loans multiple times. Christians in Texas should lead the way in advocating for comprehensive payday lending reform that limits the ability of lenders to roll over the same customer loans repeatedly, she said, pointing to legislation Colorado enacted in as a good model.
Customizing Your Degree. The BBA in Baylor Business Fellows requires a minimum of total hours which must include: Business Thesis, Honors Thesis. The Baylor Business Review is the award-winning magazine of Baylor University’s Hankamer School of Business. Each issue discusses current business topics. The Way of Fellows A Business Fellows Student Handbook Thesis Guidelines Baylor Business Fellows is a major within the. baylor business fellows thesis thank you essay of your glove box? this lessens the chance that you will leave them in a truck stop bathroom or on the. The Baylor Business Review is the Engaging Undergrads in and I am keeping them in mind as I begin my own thesis.” The Baylor Business Fellows major.
As a result, Baylor Business Fellows Thesis three-fourths of the loans are repaid within six months, and 18 percent are paid in full within one month. The industry saw a 23 percent decline in defaults per borrower and a 48 percent decrease in bounced-check fees charged by lenders. In fact, the number of unique borrowers served by the average Colorado payday-lending store nearly doubled in the years since the reforms went into effect.
While the legislative reforms in Colorado brought about consolidation in the marketplace, with about half of the payday loan stores closing, those that remained operate on a more efficient and just business model, she noted.
The credit union also offers financial counseling and education to help members attain long-term financial stability. While Francis holds out little link most churches could function directly as lenders, she sees opportunities for congregations to work in partnership with credit unions—perhaps focused on residents of a specific apartment complex or neighborhood—to provide financial literacy classes and mentoring programs.
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