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If the customer doesnt come in and pay on the southern cash loans before the due date, the company can try to cash the check. If it bounces, then the company claims it has the basis for a hot-check charge.
(Reached by phone, Cash Biz President David Flanagan said he would have someone else in the company call me back. No one did. ) Baddour, the consumer advocate, said that Cash Bizs innovation points to a persistent problem with the payday loan industry in Texas. What weve seen over and over again is that [payday lenders in Texas] are pushing the limits of the law, always finding the loopholes, finding ways to navigate through the law, she said.
Still, its not clear that the Cash Biz model is kosher. Taking out a payday loan isnt like writing a hot check for groceries.
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