Contact Your State Legislator
Credit access businesses offer high-cost small-dollar payday and auto title loans by exploiting a loophole in state law. These high-cost loans with interest rates over 500% on average trap Texans in destructive cycles of debt and drain wealth from our communities.
When borrowers cannot afford to pay back their loans, they pay fees to roll them over or extend the time in which they can repay the loan. Many borrowers roll over their loans; in fact, 72% of all payday and auto tile loans in Texas in 2012 were refinances. The high fees that accompany each loan extension never reduce the principal—trapping borrowers in a cycle of debt. When this happens, desperate borrowers often seek relief from social service agencies, churches, and non-profits.
Encourage your state legislators to take a stand against predatory lending by ensuring fair products that encourage lender and borrower success replace payday and auto title loans. Fair Products, Health Economy.