Payday Loans in Texas

A lot of people in Texas that can't get a loan from a Bank are going the route of dealing with the Payday Loan Sharks in Texas. It is a Business that will loan money, usually not more than $1,500. To help someone out until Payday. So they say. It is not unusual for these companies to charge 400, 500 or 600 percent Interest. Needless to say that a lot of these loans are never paid off. They just keep renewing or extending the loan out. The Borrower puts up the Title of their Vehicle to secure the loan. There are an estimated 95 vehicles repossessed every day by the Payday Loan Companies in Texas. The State of Texas regulates how much Interest can be charged by Banks , Credit Unions and other Loan Companies. But for some reason they will not step up and regulate these Payday Loans. Are some of these companies owned by some of our State Reps in Austin? or maybe a little under the table money.. Some Cities have stepped in and have made City Ordinances to control these Payday Loan Sharks. Dallas has initiated an Ordinance that covers Zoning Restrictions and gives some relief to the Borrowers. Each payment must have at least 25 percent of it go to the principal. The loan can not be greater than 20 percent of the Borrowers gross monthly income. Other cities include Austin, El Paso and San Antinio, with others waiting to see if the State will do something. With there being 184 lobbyists already paid up to $8.4 million to defeat payday legislation two years ago, I wonder who got most of that money? In an AARP Article, Rob Norcross a spokesman for the Consumer Service Alliance of Texas (CSAT) the industries lobbying organization said "They serve a market that does not have many alternatives or options when it comes to getting credit" So this is why they are Stuck with dealing with these Loan Sharks. He further states "If they were regulated out of business , then the millions of people across the state that are their customers wouldn't have access to credit,and they would be driven to more expensive or illegal options" Some people just can't afford to borrow money it could be because of limited income or not so good budgeting. Taking an unjustifiable advantage of someone just because they can't go elsewhere is no excuse. When you are down and out even in Bankruptcy and falling back on Medicare , they don't even take your only car.