Last year we reported this.
Henry hired Palermo Galindo as Fort Wayne’s Hispanic-immigrant liaison back in June. Palermo Galindo operates Centro De Dinero, one of those high-priced check cashing services whose target audience is the Hispanic market, and undoubtedly Fort Wayne’s illegal alien population.
Yesterday at the state of the city address Henry announced a new and exciting program to help people stay away from the leeches that operate payday loan sites.
Tonight I am also excited to announce my intent to create the “Bank on Fort Wayne” program. This new initiative will generate opportunities for any Fort Wayne residents who have relied on expensive check-cashing services and payday loan operations. This initiative will allow them to open bank accounts at local financial institutions while also receiving financial tools. Founded on the success of similar programs in Evansville and other cities, I see Bank on Fort Wayne as a win-win. It will allow some of Fort Wayne’s hardest working residents to keep more of the money they earn, save for the future, and establish relationships with local banks. I look forward to working with Councilman Hines with his banking experience, as well as the financial institutions here in Fort Wayne on this important project.
Henry’s not addressing the real problem here.
Galindo and his company, Centro De Dinero, are raking in annual percentage rates that the mafia would admire. While we could not get anyone on the phone at Centro, we did check online and it appears most all of the payday loan operators charge the same fees, the maximum allowed by the state.
Using a $500 loan amount, we used their online calculators and found the rates identical.
You Borrow: $500.00
You Payback: $567.00
Finance Charge: $67.00
APR: 349.36%
That’s for a two week loan.
By our count there are at least 27 payday loan locations in the city of Fort Wayne, with 8 concentrated on South Lafayette, South Calhoun and Broadway.
Payday loans strap borrowers with triple digit interest rates, and it’s almost always families that are living on the financial edge. They generally locate in black and poor neighborhoods, preying on those that are financially weak.
Cities are now passing ordinances that restrict both the density of payday loan operations and the distance between them. A good start would be a a temporary moratorium on any new payday loan operations, with an eventual restriction on the number of operators. Many cities also require a special use permit. In DeSoto, KS they don’t allow payday loan operations at all.
Fort Wayne has an extensive ordinancelink governing the operation of pawn shops and those that deal in precious metals and stones. Just last week I received an email from someone that had been contacted by the Fort Wayne Police Department for offering to buy gold on Craig’s List. He was told it was illegal. I checked and indeed, without a license it is.
In Indiana Payday loan operators are regulated by the Indiana Department of Financial Institutions. I’m not certain if the city of Fort Wayne can regulate the rates. Mitch?
Many cities have enacted ordinances that do, where allowed by state law. In 2007, several cities in Virginia passed resolutions asking their state General Assembly to cap payday interest rates at 36%. In 2008, it became state law.
Henry never explained any details about the “Bank on Fort Wayne” program. I suspect it’s just another feel-good gesture to give folks a warm fuzzy feeling.
Payday loan operators are supposed to be licensed . We did check the licensing databaselink for Centro De Dinero. We could not find them.
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illegals use them becuase they dont have or are "borrowing" ss numbers is the mayor now saying if you use his service you dont need a ss number? i dont think thats legal under the patriot act. is he skirting federal law? if somone has a legit ss number why would they need a special fort wayne bank program? this is kind of bizare
"Undoubtedly?" Jjust because you think something is true doesnt make it free from doubt. While I would imagine there are a lot of illegals that would be served by these sort of places, well, so does Kroger.
I agree also that these places target the poor and are indeed one of the biggest legal ripoffs, they are not a lot different than a "rapid refund" shop that masquerade as a friendly business when in fact they are a seasonal check cashing place.
It's certainly difficult to defend such a place,but I am having a difficult time figuring out the hypocrisy here. How is the hispanic immigrant liaison going to influence this program?
Also, you say that Henry isnt addressing the real problem, the predatory lending practices of payday loan shops. However it's likely true that people using these shops are not educated enough to know basic math, or have no other options. Henry's program can do nothing about the former, But does indeed seem like a way to at least try to address the latter.
The hypocrisy is Henry hired someone that runs one of those "expensive check-cashing services and payday loan operations," as he calls it.
You're most likely correct on the math issue to a degree, but if payday operations were not allowed to flourish and people had to use traditional methods, they wouldn't be taken advantage of. Or maybe, they might learn a little about fiduciary constraint.
It's a shame they even allow them here IMHO.
I guess I can see hypocrisy in the notion that the Hispanic liaison does seem to have a conflict of interest in operating predatory (albeit at-will) lending services that target Hispanics through their proximity to high concentrations of Hispanic population. Where I dont see it is in how Henry is taking aim at (near?) these places.
There are a lot of undesirable businesses, those responsible for land use (be it planning or zoning) have blood on their hands in this regard.
You surely are up to date!
Please make an attempt to do some driving around town and do some math (I know it is difficult for people like you) and before making any moronic statements and idiotic mistakes.
That business closed in 2007 and if can do some CALCULATIONS (Extreme vocabulary for you): Take away 2007 minus 2010 equals….. (Jeopardy's song…….) Ok. I know, too difficult! How about 10 ( T E N) Minus (-) 7 (seven) equals (=)…. (Jeopardy's song…….) OK. If you cain't (probably your vocabulary) Ask your elementary teacher from 30-40 yrs ago and if he/she still alive then walk across the trailer park and look for someone/something to draw it for you!!! GET A LIFE!! Hahahaha
Dan:
Be interesting if you ALSO found out how many pawn shops, bars and liquor stores are along the same corridors the paycheck-loan places are…
I'd bet there is a DIRECT correlation.
I've seen it before in Philly…like buzzards circling fresh carrion.
(kinda like a self-perpetuating crime market)
Good post.
Looking at your map, I am surprised to not see the payday loan business in question in the portion of Fort Wayne understood to have a larger mexican population, namely the near south broadway, fairfield and calhoun n/s corridors. Maybe I missed it.
just another effort to help out the ILLEGALS that have set up house in the U.S. My stimulus package to indiana would be to enact laws that every company would have to make a background check for their employee's to weed out illegals, and punish businesses that takes advantage of illegal workers at the expense of legitimate businesses that follow the law. this law was killed in indiana by the democrats in the past session. You would have 10s of thousands of jobs opening up overnight being filled by legal Indiana residents that we are now paying unemployment for.
Bank of Fort Wayne? I thought we already had that. For a long time City Utilities would cash your check or even let you back date it and grab a little cash.
Or, Mayor Tom could just direct these folks to The Deer Park, The Green Frog, or another Henry family owned bar for quick cash at a good rate……
I found the Centro de Denero… it's on Calhoun bet. Dewald and Creighton… as was suspected.
@frustrated – I think you are somewhat off topic here. There is Likely no bank that will let anyone open any kind of account without an SSN. Any person in the country illegally will not take advantage of such as using a fake of fictitious SSN at a bank would increase the chances of INS scrutiny.
There's a fine line… banning check cashing places on the grounds that they aid and abet illegals in their attempt to stay in the country illegally would open the door to banning other things, like prepaid phones or phone cards. Sooner or later it becomes considerably more difficult to enact and enforce laws making it more difficult for illegals to stay in-country without violating the conservative principles surrounding small-government and lazziez-faire.