If you have recently gotten a payday loan while living in Texas and unfortunately cannot come up with the money to pay it back, then you may be facing some jail time. A nonprofit consumer in Texas filed a lawsuit against those who cannot pay back their payday loans in order to try and get redemption for the payday loan companies. There is over fifteen hundred loan customer who this may or may not affect–and at more cost than just paying back the loan would have been.
More Facts About Texas’ Involvement and Payday Loans
Typically, Texas courts and laws do not allow the justice system to get involved in collection cases. When a customer goes to apply to get a payday loan, they just walk into the place, assure the company that they will be able to pay them back by a certain date (typically a month,) and then be done with the loan. The company focuses on how much the customer’s paychecks are monthly. However, most customers do not pay back the companies by the set date, which is why these companies are getting the Texas courts involved.
Is This a Good Thing?
In a word, yes. The reason is because these payday loans are the least amount of loans that you can get–and usually the easiest to pay back since you are supposed to on your set pay day. Although, the law and some naysayers are saying that this type of lawsuit is taking away credibility from the Texas Department of Justice and that there needs to be some quality control over the lawsuits.
Unless under dire circumstances, try to not get out a payday loan. Especially because of everything happening in our lovely state of Texas.