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In Texas, payday loan providers are becoming borrowers arrested

Arresting individuals -- or threatening to do this -- over unpaid debts is unlawful in Texas for many years now. Yet, which has hadn't stopped payday loan providers from utilizing the justice that is criminal to go after a lot more than 1,500 borrowers within the state.

Payday lenders are regularly embracing the courts l king for charges that are criminal borrowers do not have the funds to settle their loans on time, a study from Texas Appleseed found. Such fees often leads to arrest and on occasion even prison time in the event that courts opt find more info to pursue an instance.

"as well as their crazy prices and financing practices, cash advance companies are illegally utilising the unlawful justice system to coerce payment from borrowers," said Ann Baddour, manager associated with the Fair Financial Services Project at Texas Appleseed.