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 filed at the very least 1,500 unlawful complaints against borrowers. Picture: Thomas Samson/AFP/Getty Pictures

Throughout 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 perhaps maybe maybe not the actual only real finance costs being raising alarms but threats of prison time.

Payday lenders into the Lone celebrity State have actually filed at the least 1,500 unlawful complaints against borrowers for bad check writing and theft by check, based on a fresh research by Texas Appleseed, a nonprofit that encourages social and justice that is economic.

The information “documents a continuous trend of unlawful usage of unlawful fees by cash advance companies to gather debts,” states the grievance that Texas Appleseed sent this week to federal and state regulators, like the U.S. customer Financial Protection Bureau plus the Texas Attorney General’s workplace. Continue reading Group Warns Of Debtors’ Prison Tactics Among Texas Payday Lenders