Following the Observer’s reporting on a Texas payday lender’s scheme to circumvent state and local rules meant to protect consumers, state regulators issued a stern warning last week.
Tag Archives: payday loans
After we published my story on how a major Texas-based payday loan chain, the Cash Store, has found a way around new state and […]
As serendipity would have it, I had stumbled onto the latest mutant creature in the wild and wooly world of Texas payday lending. “What you’ve come across is really important,” said Ann Baddour of Texas Appleseed. “It looks like they have found a loophole within a loophole.”
Let’s be plain about what makes these businesses so profitable: usury. Structuring a loan to charge $130 in fees per $100 borrowed (that’s the average for a payday loan paid back in installments) is usury, regardless of the political contortions that keep such businesses legal.
Naivi Garcia doesn’t think of herself as a statistic, but she’s one of the many Texans—an average of 93 each day—who have their cars repossessed by auto-title lenders, according to reports from the state Office of Consumer Credit Commissioner. It’s the first time the state has collected consumer data from the payday loan and auto-title lending industries.