Group Warns Of Debtors’ Prison Tactics Among Texas Payday Lenders

Group Warns Of Debtors’ Prison Tactics Among Texas Payday Lenders

A brand new report by the nonprofit Texas Appleseed finds that payday loan providers into the Lone celebrity State have actually filed at the least 1,500 unlawful complaints against borrowers. Picture: Thomas Samson/AFP/Getty Pictures

Through the holiday breaks, customer advocates stress that cash-strapped borrowers will look to payday loan providers and dig by themselves into financial obligation with high-interest loans. In Texas, it is maybe perhaps not the only real finance charges which can be raising alarms but threats of jail time.

Payday loan providers when you look at the Lone celebrity State have actually filed at the very least 1,500 unlawful complaints against borrowers for bad check writing and theft by check, based on a unique investigation by Texas Appleseed, a nonprofit that favorable link encourages social and economic justice.

The info “documents a continuing trend of illegal utilization of unlawful costs by pay day loan organizations to get debts,” states the issue that Texas Appleseed delivered this week to federal and state regulators, like the U.S. customer Financial Protection Bureau while the Texas Attorney General’s workplace. With In one court alone, researchers discovered “arrest warrants had been released in 42 % associated with check that is bad brought centered on cash advance company complaints, and jail time or prison credit used in 5.6 % for the cases,” the issue states. Continue reading “Group Warns Of Debtors’ Prison Tactics Among Texas Payday Lenders”