12 News KBMT: Southeast Texas non-profit takes aim at payday loan businesses
January 17, 2014
Cash advance stores are a dime a dozen on College Street in Beaumont. In fact, there are 21 payday loan and auto title loan businesses in Beaumont alone.
They help people in a tough spot who need quick cash, but some people say these companies do more harm than good.
“They’re taking advantage of people who are least able to pay this kind of money back,” said Carol Fernandez, President and CEO of Catholic Charities of Southeast Texas, which helps families going through tough financial times.
Fernandez says they see cases all the time of clients who are worse off after getting cash advances from payday loan companies.
“They’re often charged interest rates starting at 300% or even up to 1,000%… and it’s outrageous,” Fernandez said.