Group Warns Of Debtors’ Prison Tactics Among Texas Payday Lenders

Group Warns Of Debtors' Prison Tactics Among Texas Payday Lenders

A report that is new the nonprofit Texas Appleseed discovers that payday loan providers when you look at the Lone celebrity State have filed at the least 1,500 criminal complaints against borrowers. Picture: Thomas Samson/AFP/Getty Photos

Throughout the holiday breaks, customer advocates stress that cash-strapped borrowers will seek out payday loan providers and dig on their own into financial obligation with high-interest loans. In Texas, it is perhaps not truly the only finance costs which can be increasing alarms but threats of prison time.

Payday loan providers when you look at the Lone celebrity State have actually filed at the least 1,500 unlawful complaints against borrowers for bad check writing and theft by check, in accordance with a brand new research by Texas Appleseed, a nonprofit that promotes social and justice that is economic.

The info “documents a continuing trend of unlawful utilization of unlawful costs by pay day loan organizations to get debts,” states the problem that Texas Appleseed delivered this week to federal and state regulators, like the U.S.

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