Texas Observer: “State Regulators Issue a Warning to Rogue Payday Loan Shops”

December 18, 2012

Excerpt: Following the Observer‘s reporting on a Texas payday lender’s scheme to circumvent state and local rules meant to protect consumers, state regulators issued a stern warning last week. My story centered on the Cash Store, an Irving-based payday chain owned by a major GOP donor. In October, I took out a $1,500, 612-percent-APR loan from a Cash Store location in Austin and discovered that the company had engineered a new mutant loan product—one that the company believes isn’t technically a payday loan and, therefore, doesn’t have to follow any of the city or state rules on such loans. The Cash Store is peddling this loan at the four stores we checked in Austin, Houston, Dallas and San Antonio.  Read more here >>