Arresting people — or threatening to take action — over unpaid debts is unlawful in Texas for decades now. Yet, which has hadn’t stopped payday loan providers from making use of the justice that is criminal to pursue significantly more than 1,500 borrowers within the state.
Payday loan providers are regularly 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 found. Such fees may lead to arrest if not prison time in the event that courts choose to pursue an instance.
“as well as their crazy prices and financing practices, pay day loan companies are illegally making use of the unlawful justice system to coerce payment from borrowers, ” stated Ann Baddour, manager regarding the Fair Financial Services Project at Texas Appleseed.