Report Finds Payday Lenders Illegally Criminalizing Borrowers

Report Finds Payday Lenders Illegally Criminalizing Borrowers

An investigation by Texas Appleseed, a statewide customer advocate and appropriate support company located in Austin, discovered that cash advance organizations illegally filed unlawful complaints against borrowers whom can not manage to spend their loans back, a training prohibited by state legislation.

In accordance with Texas Appleseed, between January 2012 and may even 2014, 13 pay day loan businesses—which in Texas operate as Credit Access companies to be able to skirt rate of interest and charge caps—filed a lot more than 1,500 “theft by check” or “bad check” criminal complaints against customers struggling to spend their debt back. Read More