Texas Is Throwing People In Jail For Failing Continually To Pay Off Predatory Loans

Texas Is Throwing People In Jail For Failing Continually To Pay Off Predatory Loans

At the very least six men and women have been jailed in Texas within the last couple of years for owing cash on payday advances, relating to a damning new analysis of general public court public records.

The financial advocacy team Texas Appleseed discovered that significantly more than 1,500 debtors have already been struck with unlawful fees into the state — and even though Texas enacted a legislation in 2012 clearly prohibiting lenders from making use of unlawful fees to gather debts.

Based on Appleseed’s review, 1,576 complaints that are criminal granted against debtors in eight Texas counties between 2012 and 2014. These complaints had been frequently filed by courts with just minimal review and based entirely in the payday lender’s term and evidence that is frequently flimsy. […]

Texas Is Throwing People In Jail For Failing Woefully To Pay Off Predatory Loans

Texas Is Throwing People In Jail For Failing Woefully To Pay Off Predatory Loans

At the very least six men and women have been jailed in Texas in the last couple of years for owing cash on pay day loans, based on a damning analysis that is new of court public records.

The advocacy that is economic Texas Appleseed unearthed that significantly more than 1,500 debtors have now been hit with unlawful fees when you look at the state — despite the fact that Texas enacted a legislation in 2012 clearly prohibiting loan providers from making use of unlawful fees to gather debts.

In accordance with Appleseed’s review, 1,576 unlawful complaints had been released against debtors in eight Texas counties between 2012 and 2014. These complaints had been usually filed by courts with reduced review and based entirely regarding the payday lender’s word and evidence that is frequently flimsy. Being outcome, borrowers have already been forced to repay at the least $166,000, the team discovered.

Appleseed included this analysis in a Dec. 17 page delivered to the customer Financial Protection Bureau, the Texas lawyer general’s office and lots of other federal government entities. […]