Arresting individuals — or threatening to take action — over unpaid debts happens to be unlawful in Texas for decades now. Yet, which has hadn’t stopped payday loan providers from utilising the criminal justice system to follow a lot more than 1,500 borrowers within the state.
Payday loan providers are regularly looking at the courts looking for charges that are criminal borrowers do not have the funds to settle their loans on time, a written report from Texas Appleseed discovered. Such costs may lead to arrest if not prison time if the courts choose to pursue an instance.
“as well as their crazy rates and financing practices, pay day loan companies are illegally with the unlawful justice system to coerce payment from borrowers,” stated Ann Baddour, manager associated with Fair Financial Services Project at Texas Appleseed.