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Are you trapped making payments on a quick cash loan that won't go away? Has your struggle to pay off an "easy" cash advance created a new crisis for you and your family?
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Active Texas CSO Locations
The number of predatory lenders in our state in recent years:
2006: 1279 2009: 3235
2007: 2252 2010: 3594
2008: 3460
Stop payday and auto title loan abuse in Texas
The time has come to address high-cost lending which is trapping more and more Texans in a destructive cycle of debt. Payday and auto title lenders in Texas often charge upwards of 500% APR for an average $300 loan. The payday and auto title loan business model is designed to trap people in debt. More than 75% of payday loans are taken out within 2 weeks of the previous loan in order to fill the financial gap caused by the loan itself. Because of the debt trap, in Texas an average payday borrower pays $840 for a $300 loan.
Payday and auto title lenders operate a multi-billion dollar lending market in this state, yet, unlike most other lenders, they are not licensed, regulated or subject to any meaningful consumer protections. In 2001, the Texas Legislature passed a law that effectively capped interest rates and fees for payday loans. To avoid complying with state lending laws, payday and auto title lenders have exploited a loophole, which allows them to continue lending at high rates under the guise of a loan broker, or Credit Services Organization (CSO).
The 500% Interest is Wrong campaign supports local and statewide efforts to curb this abusive lending.