Waco Trib: Waco must take on predatory payday practices

June 22, 2014

MIKE VILLARREAL, DAN NISLEY, GAYLON FOREMAN

Guest Columnists

Throughout the state of Texas, seniors, veterans, students, single parents and many other Texans are getting caught in a vicious cycle of debt. And dozens of our friends and neighbors are having their cars repossessed, making it more difficult for them to get to work, much less get ahead.

As a result, cities across the state are stepping up to protect their citizens from predatory payday and auto-title loans. More than 20 Texas cities have already done so and now it’s time for cities in the greater Waco area to do the same.

These payday and auto-title loans, which often have annual percentage rates over 600 percent, are marketed as emergency two-week or one-month loans backed by the borrower’s next paycheck or car title. But the business model relies on giving customers loans they cannot pay back on time.  Read more here.