The ‘unbanked’ among us
Houston Chronicle
February 1, 2009
by: Michael A. Price
Let them choose
Regarding Shannon Buggs’ Business column, “Helping the unbanked keep hard-earned cash” on Jan. 27: The Texas Coalition for Consumer Choice is a nonprofit organization devoted to promoting personal responsibility, protecting consumer choice and enhancing the economic strength of individuals and communities. While we promote saving and budgeting, we also protect consumer choice — and small, short-term loans can be a much more cost-effective way to meet an immediate need for cash than, for example, bounced check fees, late fees and reconnection fees for utility bills and credit card charges.
We applaud the efforts being undertaken by City Controller Annise Parker and the “Bank on Houston” program to help people save and to learn how to budget to handle their family finances. We are also big proponents of saving and financial literacy.
However, why is Parker characterizing customers who acquire small, short-term loans as “unbanked”? To be eligible for a small loan that is typically repaid on your next payday, you must have a checking account, among other requirements. In fact, only those who already have such accounts at a bank or credit union are eligible to borrow for small, short-term loans.
We believe Houstonians should have a variety of choices when deciding how to meet individual needs. We applaud those who can help meet that need while helping promote savings, financial literacy and consumer choice.
Michael A. Price,
Texas Coalition for Consumer Choice, Austin
