Texas payday loans
Date: Sat, 04/02/2011 - 18:31
A little advise from someone that has been down the payday loan route. A few years ago I got in trouble with payday loans and found my self borrowing more money from one payday loan place to another untill I had enough.
After studing the laws in texas I learned that basically there is no state agency that regulates or attempts to regulate the laws of these busnessess they basically are in a grey area.
Now after I defaulted on 5 yes 5 payday loans they all attempted to harress me and threaten me. After changing my phone number and closing my bank account (which 3 days after it closed one of the PDL places pushed thru an AHC on the closed account with no overdraft protection for over 1000 dollors) I have learned several things about Payday loan collections.
1- Every county is different in texas in the way they handle these, most county will not prosacute you under theft of services because the money was LOANED to me with intrest.
2- Under state law of Texas they cannot prosacute you for a "POST DATED CHECK" although there are certain countys in texas that will
3- It is against the law for any payday loan company or collections agency to threaten you with jail time or arrest for any DEBT in the state of Texas the most they can do is report it on your credit and take you to small claims court
I had one company send me a certified letter stating I had 30 days to pay if not they were turning over to county attorney office in the county. Well after 30 days low and behold I got a bad check letter from the county attorneys office stating I had 2 weeks to clear it up or face charges. At this point at no charge I confered with an attorney who just could not believe that I was going to be charged criminally for a debt so he advised me to give him a day or so and he talked with the county attorney himself who was told that the county didnt prosacute for payday loans but if they brought in there paperwork and paid the fee they would basically send you a scare letter from there office.The next day my attorney told me to not worry about it and 3 years later I dont worry about it.
People to sum it all up EVERYONE MAKES MISTAKES these places are in the busenss to loan money for a fee that makes them loan intitutions, do they need to be regulated and capped? HELL YES no one in the country should be able to charge you fees amounting to several hundred percent of the loan I urge everyone who reads this to contact your local state rep and let him or her know you support payday loan reform in a big way. We must weed this Cancer out of our society. Also dont forget 99% of there busness comes from struggling people like you and me ( FYI I am the only one working in a family of 6 and only make 30k a year) YOU ARE NOT ALONE IN THIS FIGHT DONT EVER FORGET THAT
After studing the laws in texas I learned that basically there is no state agency that regulates or attempts to regulate the laws of these busnessess they basically are in a grey area.
Now after I defaulted on 5 yes 5 payday loans they all attempted to harress me and threaten me. After changing my phone number and closing my bank account (which 3 days after it closed one of the PDL places pushed thru an AHC on the closed account with no overdraft protection for over 1000 dollors) I have learned several things about Payday loan collections.
1- Every county is different in texas in the way they handle these, most county will not prosacute you under theft of services because the money was LOANED to me with intrest.
2- Under state law of Texas they cannot prosacute you for a "POST DATED CHECK" although there are certain countys in texas that will
3- It is against the law for any payday loan company or collections agency to threaten you with jail time or arrest for any DEBT in the state of Texas the most they can do is report it on your credit and take you to small claims court
I had one company send me a certified letter stating I had 30 days to pay if not they were turning over to county attorney office in the county. Well after 30 days low and behold I got a bad check letter from the county attorneys office stating I had 2 weeks to clear it up or face charges. At this point at no charge I confered with an attorney who just could not believe that I was going to be charged criminally for a debt so he advised me to give him a day or so and he talked with the county attorney himself who was told that the county didnt prosacute for payday loans but if they brought in there paperwork and paid the fee they would basically send you a scare letter from there office.The next day my attorney told me to not worry about it and 3 years later I dont worry about it.
People to sum it all up EVERYONE MAKES MISTAKES these places are in the busenss to loan money for a fee that makes them loan intitutions, do they need to be regulated and capped? HELL YES no one in the country should be able to charge you fees amounting to several hundred percent of the loan I urge everyone who reads this to contact your local state rep and let him or her know you support payday loan reform in a big way. We must weed this Cancer out of our society. Also dont forget 99% of there busness comes from struggling people like you and me ( FYI I am the only one working in a family of 6 and only make 30k a year) YOU ARE NOT ALONE IN THIS FIGHT DONT EVER FORGET THAT
Thank you for sharing your experience and opinion in the forums,
Thank you for sharing your experience and opinion in the forums, Guest!!! :-) It's really great to note how you educated yourself about the payday loan laws and got out of the mess. Well Done! :-)