Texas Observer: “Payday Loan Chain Owned by Major GOP Donor Skirts Texas Law”

November 28, 2012

Excerpt: One day a few weeks ago, on my way to work, I walked into a Cash Store near my house in East Austin and took out a $1,500 loan. I wasn’t broke, but I sure would’ve been if I hadn’t later canceled the loan. Thankfully, Texas law allows you to cancel a payday or title loan within 72 hours, without penalty. Otherwise, repaying it in 10 installments over five months, fees, interest and principal amounted to $2,362.23—an effective APR of 612 percent. My motivation was journalistic curiosity: What is the retail experience of a typical payday loan customer? How easy is it? As easy as, say, buying a TV or toaster oven? Would there be a high-pressure sales job? Would it be hard to figure out what I was getting into?  Read more here >>