In Texas, payday loan providers are receiving borrowers arrested

In Texas, payday loan providers are receiving borrowers arrested

Arresting individuals or threatening to take action over unpaid debts happens to be unlawful in Texas for a long time now. Yet, which includesn’t stopped payday loan providers from utilizing the unlawful justice system to follow a lot more than 1,500 borrowers into the state.

Payday loan providers are routinely looking at the courts searching for charges that are criminal borrowers don’t possess the funds to settle their loans on time, a study from Texas Appleseed discovered. Such charges may lead to arrest as well as prison time in the event that courts choose to pursue an instance.

“as well as their crazy prices and financing practices, cash advance businesses are illegally with the unlawful justice system to coerce payment from borrowers,” stated Ann Baddour, manager for the Fair Financial Services Project at Texas Appleseed.

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