In Texas, payday loan providers are becoming borrowers arrested many thanks for visiting cnnmoney.

In Texas, payday loan providers are becoming borrowers arrested many thanks for visiting cnnmoney.

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Arresting individuals — or threatening to do this — over unpaid debts happens to be unlawful in Texas for many years now.

Yet, who hasn’t stopped payday lenders from making use of the justice that is criminal to follow more than 1,500 borrowers into the state.

Payday loan providers are routinely looking at the courts searching for unlawful costs whenever borrowers don’t possess the funds to settle their loans on time, a written report from Texas Appleseed discovered. Such fees may lead to arrest as well as prison time in the event that courts opt to pursue an instance.

“as well as their crazy prices and financing practices, pay day loan companies are illegally utilizing the unlawful justice system to coerce payment from borrowers,” stated Ann Baddour, manager of this Fair Financial Services Project at Texas Appleseed.

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