Every day in Texas, predatory payday and auto title loan providers drain valuable resources from our regional economy with loans that carry extortionate charges вЂ” adding as much as an expense greater than 500 percent yearly % price.
Payday-loan borrowers are working families simply with unexpected household expenses, students paying for books and classes and, of course, older Texans helping children and grandchildren break free from these high-cost loans like you and me. One out of five borrowers in Texas is age 50 or older.
Loan providers market these loans as an instant and effortless fix вЂ” up to 1000s of dollars with “no credit limitations” and no background check. But, when an individual takes out that loan, the nightmare that is real. As soon as the deadline comes, most are struggling to spend the entire balance due (principal, plus an exorbitantly high cost). The only other choice for a borrower is to pay the exorbitantly high fee and start the whole process again with the full amount (principal, plus a new exorbitantly high fee) due in another 14 days besides defaulting on the loan.